TMI Blog2013 (6) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessable as income under the head 'other sources' as during the year under consideration was the pre-commencement period of the assessee. Against assessee. - ITA No.1678/Hyd/2012 - - - Dated:- 17-6-2013 - Shri Chandra Poojari And Shri Saktijit Dey,JJ. For the Appellant : Shri Sistla Venkateswarlu, AR For the Respondent : Shri K. J. Rao, DR ORDER Per Chandra Poojari, Accountant Member:- This appeal by the assessee is directed against the order of the Commissioner of Income-tax(Appeals) II, Hyderabad dated 21.9.2012 for the assessment year 2009-10. 2. Grievance of the assessee in this appeal is with regard to the action of the Assessing Officer in treating the interest income received on fixed deposits as income from o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... infrastructure. In support of his contentions, the assessee also placed reliance on the Delhi High Court decision in the case of Indian Oil Panipat Power Consortium V/s. ITO(181 Taxmann 249). However, the Assessing Officer, observing that the assessee has not submitted any evidence in support of its claim that the assessee company faced legal hassles to purchase the land, and the consideration for the purchase of land was not required to be paid at one time, and was to be paid in instalments and the company had surplus funds in its hands, being monies not immediately required for the purchase of land or construction, and since the assessee wanted to invest it fruitfully, the surplus capital in fixed deposits, held that the interest income g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal is the nature of receipt by way of interest in the hands of the assessee, viz. whether it is a business receipt, but of capital nature to be set off against pre-operative expenses as claimed by the assessee, or an item of income from other sources, as held by the Assessing Officer and confirmed by the CIT(A). We have considered the elaborate contentions of the parties in the light of the case-law relied upon by them in respect of their respective contentions on the point in dispute. 9. In the case of CIT V/s. Sponge Iron India Ltd. (201 ITR 770), the jurisdictional High Court considering a similar issue held that since the business had not commenced, the interest income could not be treated as business income. It was further held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, reliance of the learned counsel for the assessee on these decisions of the Hon'ble Delhi High Court is of no avail and cannot be accepted in view of the binding decisions to the contrary effect rendered by the jurisdictional High Court. We are supported in this behalf by the decision of the Hon'ble Bombay High Court in the case of CIT V/s. Thana Electricity Supply Ltd. (206 ITR 727), wherein on the aspect of binding nature of a precedent, in the order of preference, the following guidelines have been laid- "17. From the foregoing discussion, the following propositions emerge: (a) The law declared by the Supreme Court being binding on all courts in India, the decisions of the Supreme Court are binding on all courts, except, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, it should refer the case to a larger Bench. (iii) Where there are conflicting decisions of courts of co-ordinate jurisdiction, the later decision is to be preferred it reached after full consideration of the earlier decisions. (d) The decision of one High Court is neither binding precedent for another High Court nor for courts or Tribunals outside its own territorial jurisdiction. It is well settled that the decision of a High Court will have the force of binding precedent only in the State or territories on which the court has jurisdiction. In other States or outside the territorial jurisdiction of that High Court it may, at best, have only persuasive effect. By no amount of stretching of the doctrine of stare decisis, can judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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