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2011 (2) TMI 1520 - HC - Income TaxTaxability under head "income from other sources" - interest income generated from the amount (amount contributed as share capital money, deposited into bank and pledge against bank guarantee issued FDR) - Tribunal arrived at a finding that the interest earned on the aforesaid amount was not inextricably linked for the setting up of the project - HELD THAT:- On these facts being established, the Tribunal applied the ratio of the judgment of this Court in the case of INDIAN OIL PANIPAT POWER CONSORTIUM LIMITED, NEW DELHI VERSUS INCOME TAX OFFICER [2009 (2) TMI 32 - DELHI HIGH COURT] as well as the COMMISSIONER OF INCOME TAX VERSUS PANEM COAL MINES LTD. [2009 (9) TMI 1016 - DELHI HIGH COURT]. In the aforesaid two judgments of this Court after discussing the legal principle in detail, the Court has held that if the interest earned on the fund which are to be utilized for purchase of capital asset/ setting up of the business and that is inextricably linked with the setting up of the business, said interest will not be treated as income under the head "income from other sources". While coming to this conclusion the Court has specifically referred to the judgment of Supreme Court in the case of COMMISSIONER OF INCOME-TAX VERSUS BOKARO STEEL LIMITED [1998 (12) TMI 4 - SUPREME COURT] where it was held that it is well-settled that an income received by the assessee can be taxed under the head "income from other sources" only if it does not fall under any other head of income as provided in Section 14 of the Act. The head "income from other sources" is a residuary head of income. Thus, no question of law arises - appeal dismissed.
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