TMI Blog2009 (12) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted this as expenditure incurred in relation to the shares allotted to the appellant from the subsidiary company - assessee contended that expenditure incurred for investment in another company in the way of purchase of shares is not a capital expenditure and even the Assessing Officer allowed part of the claim which, according to him, is attributable to the actual number of shares allotted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal for our decision. During theprevious year, relevant for the assessment years 1993-94, the assessee wentfor public issue for raising capital. The expenditure incurred for raising cap-ital was claimed as deduction. In fact the assessee had made short-termdeposit of the application money and share allotment money which earnedinterest of Rs. 37,26,359. Out of this Rs. 31,67,754 was assessed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions including the decision of the Supreme Court in Tuticorin AlkaliChemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 case and severaldecisions of this court. So long as the assessee is not engaged in financing,interest on short-term deposit is rightly assessed as income from othersources and, in our view, the Tribunal rightly confirmed the assessment.We, therefore, answer this question i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not hit by the decision of the Supreme Courtin Brooke Bond's case [1997] 225 ITR 798. The standing counsel appearingfor the respondent submitted that the officer in fact has not allowed anydeduction but has only set off interest earned on short-term depositattributable to the amount invested in the subsidiary company towardsshare capital by the appellant. We also notice that factually the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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