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2003 (12) TMI 35 - HC - Income TaxInterest paid on deposit - "Whether, Tribunal was right in law in holding that the deposits of Rs. 15 lakhs made by Southern Investments with the assessee-company were not to be connected with the Bangalore project to say that the interest paid thereon was the cost of construction of the project?" - The project itself was to be financed with the aid of the deposit obtained by the assessee, and by obtaining further funds at the cost and risk of the agent In this case, the relation of the agent here was not merely that of a marketing and selling agent, but was in fact that of a financier which provided part of the finance required directly, and agreed to remain liable for the additional finance which the assessee was to secure - question referred is, therefore, answered in negative and in favour of the Revenue and against the assessee.
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