TMI Blog2018 (7) TMI 1622X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction of the steel plant. They were found to be rightly held as capital receipts and not income of the assessee from any independent source. Respectfully following the decision of Bokaro Steel Ltd.[1998 (12) TMI 4 - SUPREME COURT] we answer the questions of law in favour of the assessee and against the revenue. - I.T.A. No. 376 of 2010 - - - Dated:- 6-7-2018 - MR. K. VINOD CHANDRAN AND MR. ASHOK MENON, JJ. For The Appellants : SRI. E. K. Nandakumar, Sri. P. Benny Thomas, Sri.P.Gopinath, Sri.K. John Mathai And Smt.Preetha S. Nair For The Respondent : Sri.P.K.R. Menon,Sr.Counsel, GOI (Taxes) And Sri. Jose Joseph, SC, For Income Tax JUDGMENT K. Vinod Chandran, J. The issue raised in the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance given to the contractors to ensure smooth commencement and completion of the work. At the end of the construction work, on payment of the entire bills, there is deduction made with respect to the interest accrued on such mobilisation advance along with deduction of advance granted. The revenue found the said income to be assessable as a revenue receipt in the subject year. 4. Tuticorin Alkali Chemicals And Fertilisers Ltd. [supra] was in the circumstances of a Company, which was on the process of being set up; having taken term loans from various Banks and financial institutions, part of which borrowed funds, were parked in short-term deposits; pending its utilisation in the setting up of the factory. The short-term deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree of which are relevant to the present case. Therein there was a construction of plant for which contractors were appointed. The awarder/ assessee received income from the contractors by way of (i) rent for providing accommodation to the employees of the contractor, (ii) interest on mobilisation funds given to the contractor and (iii) the hire charges for plant and machinery given to the contractors for carrying out the construction activity. The Hon'ble Supreme Court first took up these heads for consideration. It was held that the activities of the assessee in connection with all these three receipts are directly connected with or are incidental to the work of construction of plant undertaken by the assessee. These were found to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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