2006 (1) TMI 57 - DELHI HIGH COURT

Whether the income from investment made in fixed deposits was in the instant case an income that was related to the business of the company which, as seen above, was incorporated to do business in development of real estate - whether the Tribunal was justified in upholding the order passed by the Commissioner on the principles of consistency - it is not open to the Revenue to argue that the amounts received were surplus funds invested in term deposits in anticipation of the commencement of the business. Whether or not the business of an assessee has started would depend upon the facts and circumstances of each case as much as the nature of the business that the assessee is carrying on or proposes to do - decision of the Supreme Court in Tuticorin's case does not affect the legal basis on which the income of the assessee for the previous years was held to be its business income. The ratio decidendi in Tuticorin's case will have to be applied to each case - appeal fails and is hereby dismissed