1993 (9) TMI 344

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....anuka, J. - By this reference under section 256(1) of the Income-tax Act, 1961 ('the Act'), the Tribunal has referred the following two questions ofjaw : to this Court for its opinion : 1. Whether, on the facts and in the circumstances of the case, the interest received from the deposits with a bank out of the money received from the public subscription was income from business ? ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he first question before the Court is regarding taxability of above-referred income from interest. The second question is in respect of deductibility of share issue expense from above-referred income from interest. The Tribunal held that the income of the assessee from interest on the above-referred amounts deposited with the bank was liable to be assessed under the head 'Income from other sou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee had contended that the entire expenditure on share issue should be deducted from the 'income from interest' from the deposit of share subscription amount referred to hereinabove. Since the above-referred income from interest is classified as income from other sources, the above-referred expenditure cannot be classified as business expenditure. It is obvious to us mat in this si....