1990 (1) TMI 4

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....JEE J. -The Tribunal has referred the following question of law to this court under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the income from fixed deposits was rightly ordered to be assessed as the assessee's income under the head 'Income from other sources'?" The assessment year involved is 1977-78 for which the relevant year ....

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.... Commissioner (Appeals) who was of the opinion that the amount kept in fixed deposits could not be said to be trading assets of the assessee. On second appeal by the assessee, the Tribunal upheld the conclusion of the Commissioner (Appeals) with the following observations : " After due consideration of the rival submissions, the orders of the authorities and the paper book filed, we hold that f....

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.... holding of short-term deposit and fixed deposit was only to facilitate the remittance to the foreign shipping principals by obtaining the permission of the Reserve Bank of India which is said to involve inevitable delay. No policy of the Reserve Bank of India or the terms and conditions of remittance or adjustment to the foreign shipping principals or their accounts were furnished in support of t....

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....the decision of the Commissioner (Appeals) on this point. " The Tribunal after consideration of relevant facts and submissions found that the assessee had not successfully made out the case before the Tribunal that the holding of short-term deposits and fixed deposits was only to facilitate the remittance to the foreign shipping principals by obtaining permission of the Preserve Bank of India w....