Interest income taxability upheld in the assessee's hands under binding Supreme Court precedent

Interest income was treated as assessable to tax in the assessee's hands because the Supreme Court applied the binding principle in Tuticorin Alkali Chemicals and Fertilisers Ltd. v. CIT. Although the High Court's referred question had been answered against the Revenue, the appeal was allowed on that basis and the taxability of the interest income was affirmed in favour of the Revenue.

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Issues: Whether the interest income was assessable to tax in the hands of the assessee.

Analysis: The question referred by the High Court was answered against the Revenue, but the appeal was held to succeed in view of the binding decision in Tuticorin Alkali Chemicals and Fertilisers Ltd. v. CIT. On that basis, the interest income was treated as taxable in the hands of the assessee.

Conclusion: The question was answered in the negative and in favour of the Revenue, and the interest income was held assessable to tax in the hands of the assessee.

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