TaxTMI 
TaxTMI 
2002 (9) TMI 262
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....mmon to all the three years relates to the taxation of interest on short-term deposit as income from other sources rather than business income and thereby denying deduction under s. 80-I of the Act on such income. 3. The assessee is a company engaged in the business of publishing of books and journals of Indian Customs and Central Excise Law and other related matters. It has earned certain income by way of interest. Claiming such income as business income, the assessee claimed deduction under s. 80-I of the Act on such income. However, the AO assessed the interest income under the head 'income from other sources' and thereby denied deduction under s. 80-I of the Act by observing that such interest income was not derived from the industri....
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....rt in the case of CIT vs. Sterling Foods (1999) 153 CTR (SC) 439 : (1999) 237 ITR 579 (SC) was also not applicable because in that case, no live link between carrying on the business by the assessee and the income earned by the assessee existed. In order to prove that there was a live link between the income earned by the assessee and the business carried on by it, the learned counsel stated that the journal published by the assessee-company is available on annual subscription basis and the period of subscription is one year from January to December. The persons subscribing the journal are required to pay the entire annual subscription is advance and thereafter the parts of the journal are published on periodic intervals and despatched to t....
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....l as the order of the Tribunal in assessee's own case in the asst. yr. 1990-91. He, therefore, supported the order of the CIT(A). 10. We have considered the rival submissions. Admittedly, in the asst. yrs. 1990-91, the Tribunal has taken the view against the assessee but subsequently Delhi Bench of the Tribunal by its Third Member decision in the case of Gullium Equipments (P) Ltd. on the difference of opinion, held that if there was live link between the interest income earned by the assessee and the business carried on by the assessee then such income will have to be treated as business income derived from the industrial undertaking. Hon'ble Supreme Court in the case Pradip Chandra Parija & Ors. vs. Pramod Chandra Patnaik & Ors. has he....
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....hat as the additional ground raised by the assessee involves interpretation of the provisions of law, we admit the same. 13. Hon'ble Supreme Court in the case of Ranchi Club has approved the decision of Hon'ble Patna High Court in the case of Udai Misthan Bhandar & Complex & Ors. vs. CIT & Ors. (1997) 137 CTR (Pat) 376 wherein it was held that if no specific section was mentioned in the assessment order for levy of interest, such levy will be illegal. We have perused the assessment record and find that the AO has not directed to levy the interest at all, what to say of any particular section. In view of the decision of the Hon'ble apex Court in the case of Ranchi Club, we hold the levy of interest under s. 234B in both the years was ille....