2009 (12) TMI 531

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... arising from the orders of the Tribunal for our decision. During theprevious year, relevant for the assessment years 1993-94, the assessee wentfor public issue for raising capital. The expenditure incurred for raising cap-ital was claimed as deduction. In fact the assessee had made short-termdeposit of the application money and share allotment money which earnedinterest of Rs. 37,26,359. Out of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sue is covered by a catena ofdecisions including the decision of the Supreme Court in Tuticorin AlkaliChemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 case and severaldecisions of this court. So long as the assessee is not engaged in financing,interest on short-term deposit is rightly assessed as income from othersources and, in our view, the Tribunal rightly confirmed the assessment.We, t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....imed shouldhave been allowed as this is not hit by the decision of the Supreme Courtin Brooke Bond's case [1997] 225 ITR 798. The standing counsel appearingfor the respondent submitted that the officer in fact has not allowed anydeduction but has only set off interest earned on short-term depositattributable to the amount invested in the subsidiary company towardsshare capital by the appellant. We....