1994 (11) TMI 116

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....se on being directed by this court on an application being filed under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), to refer the following question for the opinion of the court : " Whether the Income-tax Appellate Tribunal was right in holding that the interest earned by Messrs. Electrochem Orissa Ltd. to the tune of Rs. 30,960 from short-term deposits fo....

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....ee and treated the same to be income from other sources. The assessee preferred an appeal and having lost in the appeal, preferred a second appeal to the Tribunal. The Tribunal, relying upon the decision of the Patna Bench of the Tribunal in Bihar Alloy Steel Ltd. v. ITO, as well as the Special Bench decision of the Tribunal in the case of Arasan Aluminium Industries (P.) Ltd. v. ITO, came to the ....

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..... [1991] 189 ITR 670, as well as the decision of the said High Court in the case of CIT v. Seshasayee Paper and Boards Ltd. [1985] 156 ITR 542. In the aforesaid two decisions of the Madras High Court, no doubt, it has been held that where the assessee had not established its factory during the assessment year in question and, therefore, there would be no question of computing its business income d....

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....osits is not assessable as a revenue receipt. In coming to the aforesaid conclusion, the Division Bench of the Andhra Pradesh High Court relied upon the earlier decision of the said court in the case of CIT v. Andhra Farm Chemicals Corporation [1988] 171 ITR 660, and distinguished the decision of the Madras High Court in the case of CIT (Addl.) v. Madras Fertilizers Ltd. [1980] 122 ITR 139, on the....