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TMI Blog2013 (12) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... owing grounds :- "1. That on the facts and circumstances of the case, the ld. CIT(A) has erred in law in deleting the addition of Rs.5,23,094/-on account of cess on green leaf without considering the fact that expenses on account of cess on green leaf is related to 100% agricultural operation and SLP is pending before the Hon'ble Supreme Court against the decision of Calcutta High Court in the case of AFT Industries Ltd. -vs- CIT (270 ITR 167) in the light of which Ld.CIT(A) decided the issue in favour of the assessee. 2. That on the facts and circumstances of the case, the Ld. CIT(A) has erred in law in directing the A.O. to allow Rs.65,508/- & Rs.41,166/- on account of employees' contribution to P.F. since the decision of the ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. referred to supra we are of the view that the decision of the ld. CIT(A)is on the right footing and does not call for any interference. Ground No.1 of the Revenue's appeal stands dismissed. 6. In regard to ground no.2 the ld. DR vehemently supported the order of the AO. In reply the ld. AR submitted that the issue was squarely covered by the decision of the Jurisdictional High Court in the case of CIT vs M/s.Vijay Shree Limited in G.A.No.2607 of 2011 dated 6th September, 2011 where the Hon'ble Jurisdictional High Court has followed the decision of the Hon'ble Supreme Court in the case of CIT vs Alom Extrusion Ltd. reported in 390 ITR 306 to hold that the amount paid by the employees contribution beyond the due date was deductible. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the assessee-company had not started any business activity and during the relevant year it was in the process of setting up of its business. The surplus amount received on subscription of share capital was invested by the assessee in making deposits with Bank, on which the interest was earned. In this factual background, the Hon'ble Supreme Court held that as no business was admittedly commenced and the assessee earned interest on Bank deposits met out of surplus capital subscription and such income not having any connection with the setting up of the business was liable to be assessed as revenue receipts under the head 'other sources'. The position was more or less same in the case of CIT -vs- South Indian Shipping Corporation Limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of CIT vs Tamilnadu Dairy Development Corporaiton Ltd. (216 ITR 535) observed that the term 'business' is a word of wide connotation and by no means determinate in its scope and has to be considered with reference to each particular kind of activity and occupation of the person concerned. Upon the peculiar facts of this case, the interest accrued on short- term deposits of the assessee company which was met out of business funds available with the assessee-company, before the same were utilized for actual business, and as such the same is incidental to the business activity of the assessee-company and as such, the interest on short-term deposits shall be treated as business income. 33. The Hon'ble Jurisdictional Kolkata High Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent activity. Having regard to the facts, the ld. CIT(A) was justified in holding that interest on Bank deposits was assessable under the head 'business income'. 36. Similar view has been taken by the ITAT, 'B' Bench, Kolkata in ITA Nods. 70,71 & 72/Cal. of 1997 in the case of Eveready Industries India Limited -vs- DCIT, vide its order dated 24th December, 2001. 37. In view of the above discussion, we do not find any infirmity in the order of the ld. CIT(A) in holding that on the peculiar facts and circumstances of the present case, the interest income was business income and the A.O. was not justified in treating the same as income from other sources." He vehemently supported the order of ld. CIT(A). 11. We have considered the rival s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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