Promain Limited vs Commissioner Of Income Tax on 15 February, 2016

1. This is a writ petition filed by the Petitioner challenging the order dated
19th December, 2014 passed by the Income Tax Appellate Tribunal (ITAT)
in M.A. No. 06/Del/2013 in ITA No. 427/Del/2010 under Section 254(2) of
the Income Tax Act, 1961 (‘Act’) for the Assessment Year (‘AY’) 2006-07.
2. The background facts are that the Petitioner is a public limited company
incorporated under the Companies Act, 1956 and is carrying on the business
of investment, finance and trading. From the details placed on record, it is
seen that from the Assessment Year (AY) 1999-2000 onwards, the Assessee
has been filing returns declaring its sources income as dividend income,

W.P.(C) 3910/2015 Page 1 of 9
rental income, interest income and “Vyaj Badla”. In some AYs, the
Petitioner earned income from “Vyaj Badla”. However, in all the AYs from
AY 1999-2000 onwards up to AY 2012-13, the Petitioner earned interest
income. The interest income earned by the Assessee, even in a particular AY
when it did not earn any income from the Vyaj Badla business, has been
treated as business income.

Source: Indian Kanoon

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