2016 (2) TMI 795

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....dra Poojari, AM This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-6, Chennai for the assessment year 2007-08. The issue in the appeal is with regard to treatment of income from deposits as income from business instead of income from other sources. 2. Brief facts are that during the financial year 2006-07 relevant to the assessment year 2007....

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....s'. Aggrieved the assessee carried on appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) placing reliance on the judgement of Supreme Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs. CIT, cited supra, was of the view that interest income from bank deposits made from unused capital funds is assessable to tax under the head &#39....

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....peals) confirmed the order of the Assessing Officer. Against the order of the Commissioner of Income Tax (Appeals) assessee is in appeal before us. 3. Learned counsel for the assessee reiterated the submissions made before the lower authorities. On the other hand, learned Departmental Representative strongly relied on the orders of the lower authorities. 4. We have heard both the parties and....

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....he purpose of business in deposits in order to earn interest and such interest will be chargeable under section 56. The Assessing Officer and the Commissioner of Income Tax (Appeals) were of the view that the income earned by the assessee from bank deposits as income from other sources, which is fortified by the judgement of Supreme Court in the case of CIT Vs. Monarch Tools Pvt. Ltd. (260 ITR 258....