TMI Blog2000 (7) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... ing additional grounds of appeals. "(1) The sum of Rs. 22,84,994 deducted from 'Statement of expenditure during construction' cannot be included in the total income. (2) It is contended that on admission (erroneous), no income (the sum of Rs. 22,84,994) can be included in the total income. (3) The authorities below have erred and failed in their duty in not adjudicating the facts and evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT(A). From the order of the learned CIT(A), the assessee filed second appeal before the Tribunal. The inclusion of the said amount of Rs. 22,84,994 was not objected to in the grounds of appeals as originally filed before the Tribunal. However, by a forwarding letter dt. 16th July, 1983, the aforesaid additional grounds were sought to be raised by the assessee it was contended that the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r was heard by this Special Bench on 17th July, 2000. After hearing the learned authorised representative of the assessee Shri R. Ganeshan and Shri Abhey Tayal for the Department, we have come to the view that the question of taxability of the aforesaid amount of interest as income from other sources is fully covered by the Supreme Court decision in the case of Tuticorin Alkali Chemicals and Ferti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of assessment of its profits and gains of business. That does not mean that until and unless the company commences its business, its income from any other source will not be taxed. The company may keep the surplus funds in short-term deposits in order to earn interest. Such interests will be chargeable under s. 56. In other words, if the capital of a company is fruitfully untilised instead of be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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