CIT v. Rajendra Prasad Moody

115 ITR 519Supreme Court of India1978#191 most cited

What is CIT v. Rajendra Prasad Moody authority for?

For deductions under Section 57(iii) relating to "Income from Other Sources," an expenditure is allowable if it is laid out wholly and exclusively for the purpose of making or earning such income, even if no income is actually earned in that previous year.

386

judgments rely on this decision, according to BharatTax’s citation analysis of 367,164 Indian tax judgments — from 2009 to 2026.

Also referred to as

CIT v. Rajendra Prasad Moody · Rajendra Prasad Moody · 115 ITR 519 · Section 57(iii) · Income from Other Sources · deductibility of expenditure · expenses without income · wholly and exclusively · purpose of making income · Section 14A distinction · disallowance of expenses

Sections most often in play

Section 143(3)Section 57(iii)Section 1961Section 14ASection 37(1)Section 68Section 36(1)(iii)Section 143(2)

Issues it is cited on

section 57(iii)section 57disallowance u/s 14adisallowance under section 14asection 14acapital expendituresection 37(1)income from other sourcessection 37salaryprevious yearsection 10

Judgments citing CIT v. Rajendra Prasad Moody

Kavita Mandar Bhagwat, Pune vs. Income-Tax Officer, Ward - 3(4), Pune

In the result, all the three appeals of the assessee are dismissed

ITA 1312/PUN/2018[2010-11]Status: DisposedITAT Pune06 Feb 2020AY 2010-11

Bench: Shri D. Karunakara Rao & Shri Laliet Kumar

For Appellant: Shri Ajay JoshiFor Respondent: Shri Sanghamitra Khobragade
Section 56Section 57

…in earlier section. The requirement of section 57(iii) of the Act is that expenditure should be laid out or expended wholly and exclusively for the purpose of making or earning such income. 30. The Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 had observed as under:— "What section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income. It is the purpose of the expenditure that is relevant in determining the applicability of section 57(iii) and that purpose must be making or earning of income." 31. Applyin…

Kavita Mandar Bhagwat, Pune vs. Income Tax Officer, Pune

In the result, all the three appeals of the assessee are dismissed

ITA 681/PUN/2017[2011-12]Status: DisposedITAT Pune06 Feb 2020AY 2011-12

Bench: Shri D. Karunakara Rao & Shri Laliet Kumar

For Appellant: Shri Ajay JoshiFor Respondent: Shri Sanghamitra Khobragade
Section 56Section 57

…in earlier section. The requirement of section 57(iii) of the Act is that expenditure should be laid out or expended wholly and exclusively for the purpose of making or earning such income. 30. The Hon'ble Supreme Court in CIT v. Rajendra Prasad Moody [1978] 115 ITR 519 had observed as under:— "What section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income. It is the purpose of the expenditure that is relevant in determining the applicability of section 57(iii) and that purpose must be making or earning of income." 31. Applyin…

The Pr. Commissioner of Income Tax-2, Chandigarh vs. M/S TDS Management Consultant Pvt Ltd

The appeal stands dismissed

ITA/382/2019HC Punjab & Haryana06 Feb 2020

Bench: It Should Be Reinstated & Decided On Merits ? (Ii) Whether On The Facts & In The Circumstances Of The Case, The Hon'Ble Itat Is Justified In Dismissing The Miscellaneous Application Of The Revenue Without Discussing The Merits Ignoring The Legislative Intent Expressed In Cbdt'S Anuradha 2020.02.12 17:37 I Attest To The Accuracy & Integrity Of This Document

Section 14ASection 260

…in dismissing the Miscellaneous application of the Revenue, without appreciating the fact that applicability of section 14A or Rule 8D does not depend on earning of income as held by Supreme Court in the case of CIT vs. Rajender Prasad Moody (1978), 115 ITR 519 ? (iv) Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in dismissing the Miscellaneous application and not deciding the merits, without appreciating the fact that there is no such restriction to disallow the interest to extent exempt income stipulated either in section 14A of the Income Tax…

Gbt India Private Limited, Delhi vs. ACIT, Circle-10(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 8965/DEL/2019[2015-16]Status: DisposedITAT Delhi31 Jan 2020AY 2015-16

Bench: Shri N.K. Billaiya & Shri N.K. Choudhary[Assessment Year: 2015-16]

For Appellant: Shri Himanshu S. Sinha, AdvFor Respondent: Shri Surendra Pal, CIT- DR
Section 143(3)

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I-1’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI N.K. CHOUDHARY, JUDICIAL MEMBER [Assessment Year: 2015-16] GBT India Pvt. Ltd Vs. The A.C.I.T G – 21, Ground Floor, Salcon Rasvila Circle 10(1) Plot No. D-4, Saket Distt. Centre New Delhi Saket, New Delhi PAN: AAFCG 5409 D [Appellant] [Respondent] Date of Hearing : 20.01.2020 Date of Pronouncement : 31.01.2020 Assessee by : Shri Himanshu S. Sinha, Adv Ms. Vrinda Tulshan, Adv Revenue by : Shri Surendra Pal, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the…

The Pr. Commissioner of Income Tax-2, Chd vs. M/S Agri King Tractors and Equipments Pvt. Ltd

The appeal stands dismissed

ITA/356/2019HC Punjab & Haryana29 Jan 2020

Bench: It Should Be Reinstated & Decided On Merits ?” Ii. Whether On The Facts & In The Circumstances Of The Case, The Ld. Itat Is Justified In Directing The Assessing Officer To Verify The Claim Of The Assessee Having Not Earned Any Exempt Income In The Year Under Consideration & Allow The Relief Accordingly, Ignoring The Legislative Intent Anuradha 2020.01.30 16:03 I Attest To The Accuracy & Integrity Of This Document

Section 14ASection 260

…in the year under consideration and allow the relief accordingly, without appreciating the fact that applicability of section 14A or Rule 8D does not depend on earning of income as held by Supreme Court in the case of CIT vs. Rajender Prasad Moody (19678), 115 ITR 519 ?” iv. Whether on the facts and in the circumstances of the case, the order of the Ld. ITAT is justified in directing the assessing officer to verify the claim of the assessee having not earned any exempt income in the year under consideration and allow the relief accordingly, without appreciating the fact that there is no…

Venkatram Nanjundaiah Sridhar, Bengaluru vs. The Income Tax Officer, Ward- 7(2)(1), Bengaluru

In the result, the appeal of the assessee is partly allowed

ITA 1770/BANG/2019[2016-17]Status: DisposedITAT Bangalore20 Dec 2019AY 2016-17

Bench: Shri N.V. Vasudevanassessment Year: 2016-17

For Appellant: Smt. Suman Lunkar, CAFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for Dept
Section 57

…cannot be restricted so long as the expenditure was incurred for the purpose of earning income under the head ‘income from other sources’ and in this regard placed reliance on the decision of Hon’ble Supreme Court in the case of CIT v. Rajendra Prasad Moody, 115 ITR 519 (SC) wherein it was held as follows:- “What section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income. It is the purpose of the expenditure that is relevant in determining the applicability of section 57(iii) and that purpose must be making or earning of incom…

ACIT, Circle-2(1), Kolkata vs. M/S. Bip Developers Pvt. Ltd., Kolkata

In the result, the appeal of the Revenue is dismissed

ITA 1366/KOL/2019[2013-14]Status: DisposedITAT Kolkata18 Dec 2019AY 2013-14

Bench: Shri P.M. Jagtap(Kz) & Shri A.T. Varkey, Jm] I.T.A. No. 1366/Kol/2019 Assessment Year: 2013-14 Acit, Cir-2(1) Kolkata......................................………………………….................................Appellant P-7, Chowringhee Square, Kolkata – 700 069. Vs M/S. Bip Developers Pvt. Ltd.........................................................................................Respondent Ground Floor, Building Beta Bengal Intelligent Park, Block-Ep & Gp, Sector-V, Salt Lake City, Kolkata – 700 091. [Pan: Aabcb 6203 A] Appearances By: Shri Supriyo Pal, Jcit, Sr. Dr Appearing On Behalf Of The Revenue. Shri A.K. Tibrewal, Fca & Shri Saurabh Gupta, Aca Appearing On Behalf Of The Assessee. Date Of Concluding The Hearing : November 14, 2019 Date Of Pronouncing The Order : December 18, 2019 Order Per P.M. Jagtp, Vice-(Kz)

Section 143(3)Section 36(1)(iii)

…expediency exists. 13. Consequently we answer the questions of law as framed in the affirmative. The appeal shall be no order as to costs.” The Appellant company also submits that the Hon'ble Supreme Court in the case of CIT v. Rajendra Prasad Moody [1978) 115 ITR 519 (SC), had also held that were the expenditure incurred was exclusively for the purpose of making investment the same was, therefore, allowable. The Hon'ble Supreme Court in the case of Rajendra Prasad Moody while discussing the section, namely, section 57, the provisions of which are similar to that of section 36, the Hon'ble Supreme court held t…

Smt. Kavita Dipesh Shah, Surat vs. The Pr. CIT-2, Surat

In the result, the appeal of the assessee is allowed

ITA 219/SRT/2019[2014-15]Status: DisposedITAT Surat10 Dec 2019AY 2014-15

Bench: Shri Amarjit Singh & Shri O.P.Meenaआ.अ.सं./I.T.A No.219/Srt/2019 "नधा"रणवष"/Assessment Year: 2014-15 Shri Kavita Dipesh Shah, Vs. Principal Commissioner Of 1, Vishal House, Next To Gautam Income-Tax- 2, Surat Market, Kamela Darwaja, Ring Road, Surat. [Pan: Anhps 4998 R] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओरसे /Assessee By Shri Rasesh Shah, Ca राज"वक"ओरसे /Revenue By Shri O.P. Singh, Cit(D.R.)

Section 143Section 143(3)Section 14ASection 263Section 57Section 8D

…tion of interest expenses u/s. 57(iii) of the Act, the assessee has stated that section 57(iii) has been wrongly interpreted for which the assessee has placed reliance on the decision of Hon’ble Supreme Court in the case of CIT v. Rajendra Prasad Moody [1978] 115 ITR 579 (SC). However, the Pr. CIT observed that case laws are clearly distinguishable on the fact that in the case of shares of public limited companies were purchased with the intention of earning dividend, which is not the case in respect of assessee as the investment is in a private limited company. Further, in the case of assessee investment is prov…

Shri Dipesh L. Shah, Surat vs. Pr. CIT-2, Surat

In the result, the appeal of the assessee is allowed

ITA 218/SRT/2019[2014-15]Status: DisposedITAT Surat10 Dec 2019AY 2014-15

Bench: Shri Amarjit Singh & Shri O.P.Meenaआ.अ.सं./I.T.A No.218/Srt/2019 "नधा"रणवष"/Assessment Year: 2014-15 Shri Dipesh L Shah, Vs. Principal Commissioner Of 1, Vishal House, Next To Gautam Income-Tax- 2, Surat Market, Kamela Darwaja, Ring Road Surat [Pan: Afsps 3839J] अपीलाथ" / Appellant ""यथ"/Respondent "नधा"रतीक"ओरसे /Assessee By Shri Rasesh Shah, Ca राज"वक"ओरसे /Revenue By Shri Prasenjit Singh, Cit(D.R.)

Section 143Section 143(3)Section 14ASection 263Section 57Section 8D

…tion of interest expenses u/s. 57(iii) of the Act, the assessee has stated that section 57(iii) has been wrongly interpreted for which the assessee has placed reliance on the decision of Hon’ble Supreme Court in the case of CIT v. Rajendra Prasad Moody [1978] 115 ITR 579 (SC). However, the Pr. CIT observed that case laws are clearly distinguishable on the fact that in the case of shares of public limited companies were purchased with the intention of earning dividend, which is not the case in respect of assessee as the investment is in a private limited company. Further, in the case of assessee investment is prov…

DCIT, New Delhi vs. M/S. Mitsubishi Corporation India Pvt. Ltd., New Delhi

Accordingly ground & sub grounds are allowed

ITA 1558/DEL/2016[2011-12]Status: DisposedITAT Delhi25 Nov 2019AY 2011-12

Bench: Shri N.K.Billaiya & Shri Kuldip Singh

For Appellant: Shri Tarandeep Singh, CAFor Respondent: Shri Sanjay I. Bara, CIT-DR
Section 144CSection 14ASection 254Section 92B

…(DELHI BENCH ‘I-1’ : NEW DELHI) BEFORE SHRI N.K.BILLAIYA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.1558/Del./2016 (Assessment Year : 2011-12) DCIT vs. M/s. Mitsubishi Corporation Circle-16(2), India P. Ltd. 2nd Floor, Vijaya Building, Room No. 308, C.R.Building, 17, Barakhamba Road, New Delhi New Delhi (PAN : AAACM4764G) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Tarandeep Singh, CA REVENUE BY : Shri Sanjay I. Bara, CIT-DR Date of Hearing : 22.10.2019 Date of Order : 25.11.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER The Appellant, Dy. Commissioner of Income Tax (hereinafter refer…

Akash Goyal, Agra vs. ACIT Circle 1(1)(1), Agra

In the result, appeal is allowed

ITA 234/AGR/2018[2015-16]Status: DisposedITAT Agra04 Nov 2019AY 2015-16

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 143(3)Section 57

…t be fulfilled in order to qualify, the expenditure for deduction. It does not say that the expenditure shall be deductible only if any income is made or earned. Similar view is held in the cases of “CIT vs. Rajendra Prasad Moody”, (1978), Taxation 51 (3)-52, 115 ITR 519 (SC); CIT vs. Murli Manohar (1998) IX SITC 673 (All); CIT vs. Rampur Tirnber & Turney Co. Ltd. (1981) 129 ITR 58 (All.) 12. We have noted that the assessee had borrowed fund and invested the same for giving loan to the sister concerns from which it could earn interest income. The assessee had invested the amount by giving loan to the related conc…

Pluto Securities Private Limited, Mumbai vs. Deputy Commissioner of Income Tax 10(3)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 5872/MUM/2018[2015-16]Status: DisposedITAT Mumbai04 Nov 2019AY 2015-16

Bench: Shri R.C. Sharma & Shri Pawan Singhm/S Pluto Securities Private Ltd. Dcit Circle- 10(3)(2) L-1/110, The Summit, Near Room No. 509, Sawan Club, Vile Parle (E), Vs. Aayakar Bhavan, M.K. Road, Mumbai-400057. Mumbai-400020. Pan: Aaacp8330R Appellant Respondent

For Appellant: Dr. K. Shivram Sr Advocate with Shri Rahul Kakkani AdvocateFor Respondent: Shri Abi Rama Kartikiyen (DR)
Section 143(3)Section 254(1)Section 40A(2)(b)Section 57

…on the facts of the present case. 6. In support of his submission, the ld. AR of the assessee relied upon the decision of Tribunal in Triumph International Finance India Ltd. vs. ACIT [2016] 161 ITD 464 (Mum. Trib.), and CIT vs. Rajendra Prasad Moody [1978] 115 ITR 519 (SC). 7. On the other hand, the ld. DR for the revenue supported the order of ld. CIT(A), the ld. DR further submits that the expenditure claimed by assessee under section 57 does not fulfil the condition of the said provision and accordingly the entire claim was liable to be disallowed, which was rightly disallowed by ld. CIT(A). 8. We have c…

For Svl Limited, Chennai vs. ITO Corporate Ward 6(3), Chennai

In the result, Revenue’s appeals are partly allowed for statistical purposes and the assessee’s appeals are dismissed

ITA 3096/CHNY/2017[2014-15]Status: DisposedITAT Chennai31 Oct 2019AY 2014-15

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri A. Mudit Bohara, AdvocateFor Respondent: Shri R. Clement Ramesh Kumar, Addl.CIT
Section 115JSection 143(3)Section 14ASection 251(1)(a)Section 92C

…holding that the assessee did not earn any exempt income during the year when Rule 8D does not make any distinction and the intention of the assessee in making such investment is relevant to decide the issue as held by the Apex Court in Rajendra Prasad Moody (115 ITR 519) and not the actual earning of interest in a particular year. 2.4) The Ld CIT(A) erred in not following the binding decision of ITAT Chennai Bench in Siva Industries & Holdings Ltd Vs ACIT (ITA 1039/Mds/2014.2108/Mds/2012, 687 & 884/Mds/2014 dated 07/10/2016) 2.5 The Ld CIT(A) erred in deleting the addition made to book profits computed u/s 115…

For Svl Limited, Chennai vs. ITO Corporate Ward 6(3), Chennai

In the result, Revenue’s appeals are partly allowed for statistical purposes and the assessee’s appeals are dismissed

ITA 3095/CHNY/2017[2013-14]Status: DisposedITAT Chennai31 Oct 2019AY 2013-14

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri A. Mudit Bohara, AdvocateFor Respondent: Shri R. Clement Ramesh Kumar, Addl.CIT
Section 115JSection 143(3)Section 14ASection 251(1)(a)Section 92C

…holding that the assessee did not earn any exempt income during the year when Rule 8D does not make any distinction and the intention of the assessee in making such investment is relevant to decide the issue as held by the Apex Court in Rajendra Prasad Moody (115 ITR 519) and not the actual earning of interest in a particular year. 2.4) The Ld CIT(A) erred in not following the binding decision of ITAT Chennai Bench in Siva Industries & Holdings Ltd Vs ACIT (ITA 1039/Mds/2014.2108/Mds/2012, 687 & 884/Mds/2014 dated 07/10/2016) 2.5 The Ld CIT(A) erred in deleting the addition made to book profits computed u/s 115…

DCIT Corporate Circle 6(2), Chennai vs. Shriram Venture Ltd., Chennai

In the result, Revenue’s appeals are partly allowed for statistical purposes and the assessee’s appeals are dismissed

ITA 3060/CHNY/2017[2014-15]Status: DisposedITAT Chennai31 Oct 2019AY 2014-15

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri A. Mudit Bohara, AdvocateFor Respondent: Shri R. Clement Ramesh Kumar, Addl.CIT
Section 115JSection 143(3)Section 14ASection 251(1)(a)Section 92C

…holding that the assessee did not earn any exempt income during the year when Rule 8D does not make any distinction and the intention of the assessee in making such investment is relevant to decide the issue as held by the Apex Court in Rajendra Prasad Moody (115 ITR 519) and not the actual earning of interest in a particular year. 2.4) The Ld CIT(A) erred in not following the binding decision of ITAT Chennai Bench in Siva Industries & Holdings Ltd Vs ACIT (ITA 1039/Mds/2014.2108/Mds/2012, 687 & 884/Mds/2014 dated 07/10/2016) 2.5 The Ld CIT(A) erred in deleting the addition made to book profits computed u/s 115…

DCIT Corporate Circle 6(2), Chennai vs. Shriram Venture Ltd., Chennai

In the result, Revenue’s appeals are partly allowed for statistical purposes and the assessee’s appeals are dismissed

ITA 3059/CHNY/2017[2013-14]Status: DisposedITAT Chennai31 Oct 2019AY 2013-14

Bench: Shri George Mathan & Shri Inturi Rama Rao

For Appellant: Shri A. Mudit Bohara, AdvocateFor Respondent: Shri R. Clement Ramesh Kumar, Addl.CIT
Section 115JSection 143(3)Section 14ASection 251(1)(a)Section 92C

…holding that the assessee did not earn any exempt income during the year when Rule 8D does not make any distinction and the intention of the assessee in making such investment is relevant to decide the issue as held by the Apex Court in Rajendra Prasad Moody (115 ITR 519) and not the actual earning of interest in a particular year. 2.4) The Ld CIT(A) erred in not following the binding decision of ITAT Chennai Bench in Siva Industries & Holdings Ltd Vs ACIT (ITA 1039/Mds/2014.2108/Mds/2012, 687 & 884/Mds/2014 dated 07/10/2016) 2.5 The Ld CIT(A) erred in deleting the addition made to book profits computed u/s 115…

DCIT, New Delhi vs. M/S. Omni Farms Pvt. Ltd., New Delhi

Appeal of the Revenue is dismissed

ITA 3564/DEL/2016[2012-13]Status: DisposedITAT Delhi30 Oct 2019AY 2012-13

Bench: Shri N.K. Billaiya & Ms Suchitra Kambleassessment Year: 2012-13

Section 143(2)

…in nature. Further, for claiming expenses, it is not necessary that income should be earned, as held in the case of CIT vs. Madan Lai Jain (1982) 136 ITR 409 (Del) wherein relying on the decision of Hon'ble Supreme Court in the case of CIT vs. Rajendera Moody 115 ITR 519, it was held as under :- “6………Where an assessee has incurred expenses in 9 order to acquire a source of income but there is no income from that particular source then the income should be taken as nil and the assessee should be given such deduction as would be allowable to him had there been a positive income ………." 10.5 Therefore, though there i…

Shri Mahendra Singh Meel, Jaipur vs. Income Tax Officer, Jaipur

In the result, the appeal of the assessee is allowed

ITA 55/JPR/2018[2014-15]Status: DisposedITAT Jaipur29 Oct 2019AY 2014-15

Bench: The Appeal Hearing.”

For Appellant: Shri S.L. Jain (Advocate)For Respondent: Smt. Poonam Rai (DCIT)
Section 57

…s no provision under section 57 to restrict the claim of expenditure on the ground that the expenditure is more than the income. In support of his contention, he has relied upon the decision of Hon’ble Supreme Court in case of CIT vs. Rajendra Prasad Moody, 115 ITR 519 (SC) as well as the decision of Hon’ble Punjab & Haryana High Court in case of CIT vs. Pankaj Munjal Family Trust, 326 ITR 286 (P&H) and submitted that the Hon’ble Supreme Court has held that it is not necessary that any income should in fact have been earned as a result of the expenditure. The only requirement for allowing the deduction under…

Shri Kailash Chand Soni C/O- S.L. Poddar & Company E-3A, Kanti Chandra Raod, Bani Park, Jaipur vs. ACIT Circle-5, Jaipur, Circle-5

In the result, this ground raised by the assessee is allowed

ITA 960/JPR/2019[2014-15]Status: DisposedITAT Jaipur01 Oct 2019AY 2014-15

Bench: Or At The Time Of Hearing.”

For Appellant: Sh. S. L. Poddar (Adv.)For Respondent: Sh. Rajendra Singh (JCIT)
Section 143(3)Section 57

…• The decision of the Hon'ble Apex Court rendered in the case of Vodafone International Holdings B. V. V/s. Union of India &Anr. reported in 341 ITR 1 (SC) • Hon'ble the Supreme Court in the case of Commissioner of Income Tax v. Rajendra Prasad Moody, (1978) 115 ITR 519. 3. The expenditure laid out wholly and exclusively for earning such interest income under the head "income from other sources" In order to decide whether expenditure is a permissible deduction u/s 57(iii), following things must be considered in mind:- (1) expenditure must not be in the nature of capital expenditure or personal expenses of the…

DCIT, Circle-10(1) vs. Delhi Metro Rail Corp. Ltd., New Delhi

The appeal of the assessee is dismissed

ITA 4432/DEL/2005[2000-2001]Status: DisposedITAT Delhi26 Sept 2019AY 2000-2001

Bench: Ms Suchitra Kamble & Shri Prashant Maharishii.T.A. No. 4432/Del/2005 (A.Y. 2000-01) I.T.A. No. 4433/Del/2005 (A.Y. 2001-02)

Section 10Section 143(3)Section 263Section 271(1)(c)Section 56

…is held assessable under the head ‘income from other sources’ that will make no difference in as much as business loss will go up and the same has to be set off from the purported income from other sources. The Ld. AR relied upon CIT vs. Rajendra Prasad Moody 115 ITR 519 (SC). 11. The Ld. DR submitted that the assessee has earned huge amount of interest income in years under consideration. The surplus funds have been deposit as fixed deposit/flexi deposit. The business of the assessee is planning, development, construction, maintenance, operation and financing of mass transit and urban transport system in nation…