TMI Blog2017 (1) TMI 1651X X X X Extracts X X X X X X X X Extracts X X X X ..... T(Appeals) confirming the action of the Assessing Officer in bringing to tax interest income in question in the hands of the assessee under the head “income from other sources”. - Decided against assessee. - I.T.A. No. 1018/KOL/2012 - - - Dated:- 6-1-2017 - Shri P.M. Jagtap, Accountant Member And Shri N.V. Vasudevan, Judicial Member For the Appellant : None For the Respondent : Shri R.S. Biswas, CIT, D.R. ORDER Per Shri P.M. Jagtap, A.M. : Per Shri P.M. Jagtap, A.M.: This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals), Central-II, Kolkata dated 15.05.2012 and the solitary issue involved therein relates to the treatment to be given to the interest of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see were more similar to the facts involved in the case of Tuticorin Alkali Chemicals and Fertilizers Limited (supra) relied upon by the Assessing Officer rather than the facts involved in the case of CIT vs.- Bokaro Steel Limited [236 ITR 315 (SC)] on which reliance was placed by the assessee in support of its case on this issue. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal. 3. At the time of hearing before us, the ld. Authorized Representative of the assessee has moved an application seeking adjournment. However, keeping in view that the assessee has already taken many adjournments in this case on one pretext or the other and while granting such adjournment earlier, the las ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the factories, the assessee had received interest income on the short-term deposit kept with Banks and such interest income was held to be chargeable to tax by the Hon ble Supreme Court in the hands of the assessee under the head income from other sources by observing that interest income is always of a revenue nature, unless it is received by way of damages or compensation. It was held by the Hon ble Supreme Court that income-tax is attracted at the point when the income is earned and taxability of income is not dependent upon its destination or the manner of its utilisation. It was held that it has to be seen whether at the point of accrual, the amount is of a revenue nature and if it is so, the amount will have to be taxed. It was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee-company, this arrangement primarily meant payment in advance of the amounts of the contractors' bills for which the asseessee-company had charged interest. This interest was later adjusted against the dues of the contractors. (3) For the purpose of the construction work the assessee had given on hire certain plant and machinery to the contractors. Against the letting of plant and machinery the assessee received from the contractors income in the form of hire charges. It was not the business of the assessee-company to let out plant and machinery to others. The assessee-company permitted its use only to its own contractors for the construction work done by the contractors for the assessee-company. The Tribunal has found that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As a matter of fact, the assessee in the said case had also invested the amount borrowed for the construction work, which was not immediately required, in short-term deposit and earned interest thereon. The said interest was brought to tax in the hands of the assessee as income under the head income from other sources and this treatment given by the revenue authorities was accepted by the assessee as specifically noted by the Hon ble Supreme Court in its judgment. After taking note of the same, it was observed by the Hon ble Supreme Court in its judgment passed in the case of Bokaro Steel Limited (supra) that this issue, in any case, stood concluded by a decision of the Court in the case of Tuticorin Alkali Chemicals Fertilizers Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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