TMI Blog1987 (4) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... se of manufacturing chemicals. Certain money was lying with it during its formative period. With a view not to keep the said money idle, it deposited the same with the holding company, i.e., Andhra Sugars Ltd. These deposits were to mature only on December 31, 1974. Meanwhile, the assessee required some money and it borrowed a sum of Rs. 2 lakhs from Andhra Sugars Ltd. The inter it paid on this amount of Rs. 2 lakhs was set off against the interest earned on the deposits made by the assessee with Andhra Sugars Ltd. and only an amount of Rs. 21,401 was returned by the assessee. To be more precise, the interest earned on the deposits made by the assessee-company was Rs. 34,865 and the interest paid by it on the loan taken from Andhra Sugars w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that though for the purpose of accountancy, there appeared to be two independent transactions in truth and in reality there was only one transaction ? " Learned standing counsel for the Revenue contended that inasmuch as the assessee had not commenced business, nor has it carried on any business during the accounting year relevant to the assessment year concerned herein, the amount of Rs. 13,464 cannot be deducted under section 37. The income of Rs. 34,865 is taxable under the head "Other sources " under section 56 of the Act. If so, the deduction of Rs. 13,464 can be claimed under and is referable only to clause (iii) of section 57. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified or warranted. Once that finding is accepted as correct, there is no scope for applying section 57(iii). The Tribunal has also referred to the real income theory which again do not think it is necessary to go into or pronounce upon. It is, therefore, unnecessary for us to deal with the several decisions by Iearned standing counsel rendered with reference to section 57(iii). Once we accept the finding of fact recorded by the Tribunal as correct, and when practically no question of law arises as stated above, we see no reasons to disturb the said finding of fact. Accordingly, the question which his been reframed by us above, is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. No costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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