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2006 (2) TMI 140 - HC - Income TaxInterest earned/accrued on margin money deposits by the assessee - finding of fact recorded by the Commissioner of Incometax (Appeals) and affirmed by the Tribunalis to the effect that the deposit of the margin money by the assessee with the banks was inextricably linked to the furnishing of the bank guarantees by the assessee to the Department of Telecommunications for obtaining a licence – That finding in our view concludes the controversy inasmuch as, if the deposits were indeed inextricably linked to the business of the assessee, the question whether the income accruing on the said deposits would constitute business income stands answered by the decisions of the Supreme Court in Bokaro Steel Ltd. and Karnal Co-operative Sugar Mills' Ltd. – held that where the income in the nature of interest flows from deposits made by the assessee which deposits are in turn inextricably linked to the business of the assessee, the income derived on such deposits cannot be treated as income from other sources. - no question of law, much less a substantial question of law arises for our consideration in this revenue’s appeal
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