TMI Blog2015 (1) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... for setting up its plant in terms of the assessees agreement with the supplier - It was on the money so deposited that some interest has been earned - This is, therefore, not a case where any surplus share capital money which is lying idle has been deposited in the bank for the purpose of earning interest – thus, the income received thereupon cannot be termed to be income from other sources – Decided in favour of assessee. - TAX APPEAL NO. 1281 of 2006 - - - Dated:- 1-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR RK PATEL, ADVOCATE FOR THE RESPONDENT : MR. P.G. DESAI, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. By way of this appeal, the appellant-assessee has challenged the order dated 06.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allied matter decided on 14.10.2014 and contended that the question of law involved in this appeal is covered by the above decision. He, therefore, urged that in view of the above decision, the present appeal deserves to be allowed. 5. Learned advocate for the respondent is not in a position to distinguish the decision relied upon by learned advocate for the appellant rendered in Tax Appeal No.186 of 2003 and other allied matters. 6. We have heard learned advocates appearing for both the parties and perused the material on record. The question of law involved in this appeal is concluded by this Court in Tax Appeal No.186 of 2003 and other allied matters. In paragraph Nos. 8, 9, 9.1 and 10, it has been observed as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lizers Ltd. vs. CIT [1997] 227 ITR 172 will not be attracted. The more appropriate decision in the factual situation in the present case is in CIT vs. Bokaro Steel Ltd. [1999] 236 ITR 315 (SC). The appeal is dismissed. There will be no order as to costs. 9.1 Similarly the relevant observations made in Tax Appeal No. 257 of 2000 by this Court are as under: 13. In the present case, the assessee's stand has consistently been that due to insistence of the financial institutions, the assessee was compelled to park certain amount in fixed deposits from which it earned interest of 12 per cent, whereas the market rent at the relevant time was higher. Such interest income was utilized for the purpose of assessee's business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly from the industrial undertaking. 10. Thus, it is clear that the income earned from fixed deposit placed for business purpose cannot be treated as income from other source but must be seen as part of the assessees business income. In the present case also the assessee was compelled to park a part of its funds in fixed deposits under the insistence of the financial institutions and therefore the income received thereupon cannot be termed to be income from other sources. 7. In view of the aforesaid decision, the question of law raised in this appeal is required to be answered in favour of the assessee as the question raised is no longer res integra and will govern this case also as facts and law applicable are similar. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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