TMI Blog2005 (1) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of sale proceeds of empty bags and containers, drums etc. and interest on F.D. has no nexus for calculation of profit of the assessee's business at the estimated rate of net profit adopted for the purpose? 2. Whether the Tribunal was justified in confirming the order of the authorities below in holding that the receipt of the sale proceeds of empty bags and interest on F. D. do not form part and parcel of the contract business and thus the amount so received at Rs. 3,85,578 is to be assessed separately under the head 'Income from other sources'? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the interest on F. D. and miscellaneous receipts on account of sale of empty bags, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is view, the assessee prayed for the reference to this court. This request having been acceded to the Tribunal made the reference to this court to answer the aforementioned questions. Heard Shri S. C. Bagadia, learned senior counsel with Shri D. K. Chhabra, learned counsel for the assessee and Shri R. L. Jain, learned senior counsel with Ku. V. Mandlik, learned counsel for the Revenue. Having heard learned counsel for the parties and having perused the record of the case, we are inclined to answer the reference in favour of the assessee in part as indicated infra. In our opinion, the income earned by way of interest on short-term deposit (FDR) by an assessee has to be taxed as an income chargeable under section 56 of the Act, i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of civil construction, etc., are also engaged in some kind of money-lending or deposit business with their surplus funds. We cannot ignore the pointed observations and/or findings of the Supreme Court quoted supra on the ground that it was made in altogether different context and, hence, the same is liable to be ignored. On the other hand, we are inclined to respectfully follow being a law laid down by the Supreme Court on the subject holding the field. Learned counsel for the assessee no doubt cited some of the authorities of the various High Courts which to some extent can be construed as supporting his submissions. These authorities are-CIT v. Madras Refineries Ltd. [1997] 228 ITR 354 (Mad), Snam Progetti S. P. A. v. Addl. CIT [1981 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
