TMI Blog2005 (9) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... d payment was made towards import of the machinery is also not questioned by the Revenue. The interest earned on the short-term deposits of the money kept apart for the purpose of business has to be treated as income earned on business and cannot be treated as income from other sources - question is answered in favour of the assessee and against the Revenue - - - - - Dated:- 5-9-2005 - Judge(s) : R. M. LODHA., N. A. BRITTO. JUDGMENT The judgment of the court was delivered by R.M. Lodha J.- This appeal is at the instance of the Revenue and raises the following substantial question of law: "Whether the findings of the Income-tax Appellate Tribunal that the interest income received by the assessee is in the nature of business incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order on the ground that the interest received by the assessee in the sum of Rs. 7,07,711 was in the nature of business income and that deduction under sections 80HH and 80-I was available to the assessee. The Commissioner of Income-tax (Appeals) allowed the assessee's appeal by order dated February 26, 1993 and treated the interest income in the sum of Rs. 7,07,711 as business income and directed the Assessing Officer that the deduction under sections 80HH and 80-I be allowed to the assessee. The order of the Commissioner of Income-tax (Appeals) came to be challenged before the Income-tax Tribunal. By its order dated October 11, 2001, the Income-tax Appellate Tribunal, dismissed the appeal giving rise to the present appeal. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay-interest on deposits B1241/20.3.90 18% Interest on deposit with Pushpa Corporation 11,493 B1276/30.3.90 Interest on short-term deposit with M/s. Kamat 33,333 Real Estate J49/31.3.90 Interest on deposit with M/s. Electrosales Poona 66,840 ---------- Total 7,07,711 --------------------------------------------------------- The explanation and the evidence furnished by the assessee were that the assessee was to import machinery and for which orders were already placed, the funds were kept apart from surplus for this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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