INDIA METAL ONE STEEL PLATE PROCESSING PRIVATE LTD.,CHENNAI vs. DCIT, CHENNAI

ITA 3497/CHNY/2016Status: DisposedITAT Chennai27 November 2018AY 2012-1311 pages
AI SummaryDismissed

What did the Tribunal hold?

The tribunal held that interest earned on surplus funds invested in short-term deposits before commencement of business is taxable under 'income from other sources'. Expenses incurred for setting up the business cannot be set off against this interest income.

What were the facts?

The assessee earned interest income from short-term bank deposits before commencing commercial production. The Assessing Officer treated this interest income as taxable under 'income from other sources', rejecting the assessee's claim that it was a capital receipt.

What were the issues?

Whether interest income earned before commencement of business is a capital receipt or revenue receipt, and whether expenses incurred for setting up business are deductible from such interest income.

Which sections of the Income-tax Act were involved?

Section 56,Section 57

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(8)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: SHRI GEORGE MATHAN & SHRI S. JAYARAMAN

For Appellant: Shri. R. Vijayaraghavan, Advocate, Shri. AR. V. Sreenivasan, JCIT
Hearing: 27.11.2018Pronounced: 27.11.2018

PER S. JAYARAMAN, ACCOUNTANT MEMBER :

The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-6, Chennai in ITA No.

185/CIT(A)-6/15-16 dated 18.10.2016 for assessment year 2012-13. :-2-: ITA No. 3497/Chny/2016

2.

M/s. India Metal One Steel Plate Processing Pvt. Ltd., the assessee, a company incorporated on 20.04.2011,

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 56

All 1,790 judgments and leading authorities on Section 56 →

Recent GST High Court judgments

Search GST case law →