1990 (9) TMI 33

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....is is an application by the Department praying that the following question should be directed to be referred to us under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that (1) interest on sale deposits of Rs. 20,000, (2) interest on temporary loan from surplus funds of Rs. 14,686 and (3) interes....

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....ch time as they were required for construction. Thus, interest was earned on these amounts. The assessee was also required to give a guarantee to the State Bank in respect of the land taken on lease for construction work. For this purpose, certain amounts were kept in fixed deposits on which the assessee earned interest. In these circumstances, the Tribunal has given a finding of fact to the effec....