TMI Blog2016 (2) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome" but "income from other sources" only. It is possible to have different sources of income each one of which will be chargeable to income-tax and the assessee can keep the surplus funds which are not immediately required for the purpose of business in deposits in order to earn interest and such interest will be chargeable under section 56. - Decided against assessee - ITA No. 2013/Mds/2015 - - - Dated:- 20-1-2016 - Chandra Poojari, AM And Duvvuru RL Reddy, JM For the Appellant : Mr N C Prabhakar, Adv For the Respondent : Mr A V Sreekanth, JCIT ORDER Per Chandra Poojari, AM This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-6, Chennai for the assessment year 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding interest paid on borrowed funds are to be capitalized. Commissioner of Income Tax (Appeals) was of the view that the Supreme Court while delivering the judgement in the case of CIT Vs. Bokaro Steels Ltd. (236 ITR 315) (SC) has referred to its earlier decision in the case of Tuticorin Alkai Chemicals Fertilizers Ltd.(supra). The Commissioner of Income Tax (Appeals) distinguished the facts in the cases of Indian Oil Panipat Power Consortium Ltd. (315 ITR 255) (Del) and Bokara Steels Ltd. (236 ITR 315) (SC) and held that the same are not applicable to the facts of the present case. Thus, following the decision of Supreme Court in the case of Tuticorin Alkali Chemicals Fertilizers Ltd. (supra), the Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the judgement of Supreme Court in the case of CIT Vs. Monarch Tools Pvt. Ltd. (260 ITR 258) (SC). 5. In the case of Bongaigaon Refinery Petrochemicals Ltd. Vs. CIT (251 ITR 329) (SC), Larger Bench of the Supreme Court after considering the judgement of the Supreme Court in the case of CIT Vs. Bokaro Steels Ltd. (236 ITR 315) and Tuticorin Alkali Chemicals Fertilizers Ltd., cited supra, observed that income derived from house property, guest house, hire charges for equipment and recoveries from contractors on account of water and electricity supply received during the period of formation of the assessee's business is not chargeable to tax but it has to be adjusted against project cost. However, interest income is taxable unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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