CIT vs. SAHDEV JEWELLERS

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ITA/879/2011HC DelhiDLHC01038545201125 July 2011Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MR. JUSTICE M.L. MEHTA1 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that there was no question of law involved in the present appeals. This decision was based on the fact that the ITAT had previously dismissed similar appeals (ITA Nos. 865/2011 & 866/2011) on 21.07.2011, holding that no question of law arose. The present appeals were therefore dismissed following that precedent. The Tribunal noted that the assessee's contention regarding the limited purpose of treating FDR interest as 'income from other sources' for ascertaining expenses under Section 57(iii) had been accepted, and thus the matter was not required to be further answered on merits. The operative direction was the dismissal of the appeals.

What were the facts?

The appeals were filed by the Revenue against the orders of the Income Tax Appellate Tribunal (ITAT). The ITAT had previously decided similar issues in ITA Nos. 865/2011 & 866/2011. The assessee's contention before the ITAT was that interest income from Fixed Deposits (FDRs) was treated as 'income from other sources' only for the limited purpose of ascertaining expenses allowable under Section 57(iii) of the Income Tax Act. The present appeals were disposed of by following the earlier order in ITA Nos. 865/2011 & 866/2011.

What were the issues?

1. Whether there is a question of law involved in the present appeals, arising from the ITAT's decision regarding the treatment of interest income from FDRs as 'income from other sources' for the limited purpose of ascertaining expenses allowable under Section 57(iii) of the Income Tax Act. Assessee's Contention: The assessee contended that interest income from FDRs was to be treated as 'income from other sources' only for the limited purpose of ascertaining expenses allowable under Section 57(iii) of the Income Tax Act. Revenue's Contention: The judgment does not record any specific contentions made by the Revenue in these appeals, other than the fact that they are challenging the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 57(iii)

AI-generated summary — verify with the full judgment below

1 \ __ 3,4# % 25.07.2011 (COMMON ORDERS) Present: Mr.Abhishek Maratha, Sr.Standing Counsel for the appellant. Mr.Amit Dayal, Advocate for the respondent + ITA NoS.880/2011 & 879/2011 * Similar question of law has been raised by the respondent in ITA Nos.865/2011 & 866/2011. In fact order passed by the Tribunal in that appeals has been called upon in the present case as well. It was noted that the contention of the respondent before the Income Tax Appellate Tribunal contending that interest income of FDR is treated as "income from other resources" has been accepted only for limited purpose namely to ascertain the expenses which are allowable under Section 57 (iii) of the Income Tax Act. The matter is thus not required to be answered. ITA Nos. 865/2011 & 866/2011 were dismissed on 21.7.2011 holding that there was no question of law involved. Following that order, these appeals are also dismissed. M.L.MEHTA, J. July 25, 2011 sa I Digitally Signed By:AMULYA Certify that the digital file and physical file have been compared and the digital data is as per the physical file and no page is missing. Signature Not Verified

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