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2018 (6) TMI 1605 - CALCUTTA HIGH COURTInterest income relatable to the tea business - assessment as income from other sources - Whether the interest income derived from temporary investment of surplus borrowed funds for the business of growing and manufacturing of tea, would fall within the scope of Rule 8 of the Income Tax Rules, 1962? - HELD THAT:- Appellate Tribunal noticed the previous view of this Court in favour of the assessee in the judgment reported in Eveready Industries India Ltd. vs. CIT [2009 (12) TMI 226 - CALCUTTA HIGH COURT] but was of the opinion that in view of the Supreme Court dictum in the judgment reported in Pandian Chemicals Ltd. vs. CIT [2003 (4) TMI 3 - SUPREME COURT] the judgment in Eveready Industries India Ltd. was no longer good law. However, in a more recent judgment in CIT vs. Meghalaya Steels Ltd. [2016 (3) TMI 375 - SUPREME COURT] the Supreme Court restricted the operation of the Rule in Pandian Chemicals Ltd. and expressly approved, inter alia, the judgment of this Court in Merinoply and Chemicals Ltd. [1993 (8) TMI 29 - CALCUTTA HIGH COURT] on the construction of Section 80-IB and Section 80-IC of the Income Tax Act, 1961. The Revenue is represented and accepts the legal position as evident from the judgment in Meghalaya Steels Ltd. Accordingly, the judgment and order impugned is set aside on the basis of the Supreme Court judgment in Meghalaya Steels Ltd. and the order of the Commissioner (Appeals) passed on April 24, 2010 is restored on such ground
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