Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

227 ITR 172Supreme Court of India1997#96 most cited

What is Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT authority for?

Interest income earned on deposits, particularly before the commencement of business operations or as a requirement for business licensing, is taxable as "income from other sources" under Section 56, and cannot be treated as business income or set off against interest on borrowed funds.

621

judgments rely on this decision, according to BharatTax’s citation analysis of 371,887 Indian tax judgments — from 2007 to 2026.

Also referred to as

Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT · 227 ITR 172 · Section 28 · Section 56 · Section 57 · income from other sources · business income · interest income · commencement of business · capitalization of interest · year of expenditure claim

Also reported as

141 CTR 387

Sections most often in play

Section 250Section 143(3)Section 41(1)Section 14ASection 40(a)(ia)Section 37(1)Section 147Section 28(iv)

Issues it is cited on

section 57profits and gains of business or professionsection 56section 32revenue expenditureincome from other sourcessection 28section 37(1)capital expendituresection 43section 37previous year

Judgments citing Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT

Income Tax Officer, Ward-17(2), Hyderabad vs. Elgen (India) Private Limited, Hyderabad

In the result, appeal of the revenue is allowed

ITA 244/HYD/2019[2015-16]Status: DisposedITAT Hyderabad30 Apr 2021AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahuassessment Year: 2015-16 Income-Tax Officer, Vs. Elgen (India) Pvt Ltd., Ward - 17(2), Hyderabad. Hyderabad. Pan – Aaace 8520C (Appellant) (Respondent) Revenue By: Shri Rohit Mujumdar Assessee By: Shri M. Poorna Chander Rao Date Of Hearing: 15/03/2021 Date Of Pronouncement: 30/04/2021

For Appellant: Shri M. Poorna Chander RaoFor Respondent: Shri Rohit Mujumdar
Section 143(3)

…,127/- was treated as income from other sources. 5.3 Before me, Appellant submitted that Assessing Officer assessed the interest income under the head" other sources" by relying on the decision of the Supreme Court in the case of Tuticorin Alkalis reported in 227 ITR 172. The appellant submitted that the Assessing Officer who is aware of the decision should be aware of the facts and application of such ratio to such facts. What the apex court in fact held is that where the business of the assessee has not commenced and no profit and loss account Is drawn, it is required to assess the interest income separately un…

Mr. Pramod Kumar Khandelwal, Agra vs. Dy.C.I.T.-1, Agra

The appeals of the assessee are allowed in the terms indicated

ITA 201/AGR/2016[2010-11]Status: DisposedITAT Agra12 Apr 2021AY 2010-11

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 145Section 271(1)Section 44A

…only when there is a direct nexus between the interest income and business exigency to keep such deposits in the bank, that interest income be treated as part of business income. However, in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd, vs CIT. 227 ITR 172 (SC), the Apex Court has held that interest from bank deposits could only be taxed as income under the head "Income from Other Sources" under section 56 of the Income Tax Act. In the context of export profits, it is held in the case of Nanji Topanbhai and Co. vs. ACIT, 243 ITR 192 (Ker)(2000) that interest being assessable as interest under the s…

Mr. Pramod Kumar Khandelwal, Agra vs. Dy.C.I.T.-1, Agra

The appeals of the assessee are allowed in the terms indicated

ITA 200/AGR/2016[2011-12]Status: DisposedITAT Agra12 Apr 2021AY 2011-12

Bench: Shri Laliet Kumar & Dr. Mitha Lal Meena

Section 145Section 271(1)Section 44A

…only when there is a direct nexus between the interest income and business exigency to keep such deposits in the bank, that interest income be treated as part of business income. However, in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd, vs CIT. 227 ITR 172 (SC), the Apex Court has held that interest from bank deposits could only be taxed as income under the head "Income from Other Sources" under section 56 of the Income Tax Act. In the context of export profits, it is held in the case of Nanji Topanbhai and Co. vs. ACIT, 243 ITR 192 (Ker)(2000) that interest being assessable as interest under the s…

Meja Urja Nigam (P) Ltd., Allahabad vs. Income Tax Office Ward-2 (2), Allahabad

In the result, both the appeals of the assessee for ay: 2015-16 and 2016-17

ITA 54/ALLD/2020[2015-16]Status: DisposedITAT Allahabad03 Mar 2021AY 2015-16

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Ms.Namita S. Pandey, CIT DRFor Respondent: Shri Parv Agrawal, CA
Section 143(3)

…ncome of the assessee from other sources. The assessee has not filed any appeal from this finding which is given against it. In any case, this question is now concluded by a decision of this Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172. Hence, we are not called upon to examine that issue.” (Emphasis supplied by us) We have also gone through the decision of Hon’ble Allahabad High Court in the case of M/s Sangam Power Generation Limited(supra) and have observed that Hon’ble jurisdictional High Court has passed a detailed order and decided this issue in favour of Revenue. We have…

Anrak Aluminium Limited, Hyderabad vs. DCIT, Circle-1(1), Hyderabad

Appeal is partly allowed in foregoing terms

ITA 994/HYD/2017[2013-14]Status: DisposedITAT Hyderabad08 Feb 2021AY 2013-14

Bench: Shri S.S.Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V.Raghuram, ARFor Respondent: Smt. Anjala Sahu, DR
Section 115JSection 143(3)Section 14A

…127/- was treated as income from other sources. 5.3 Before me, Appellant submitted that Assessing Officer assessed the interest income under the head" other sources" by relying on the decision of the Supreme Court in the case of Tuticorin Alkalis reported in 227 ITR 172. The appellant submitted that the Assessing Officer who is aware of the decision should be aware of the facts and application of such ratio to such facts. What the apex court in fact held is that where the business of the assessee has not commenced and no profit and loss account Is drawn, it is required to assess the interest income separately un…

ITO6(1)(3), Mumbai vs. Bebanco Developers Limited, Mumbai

The appeal stand dismissed

ITA 4281/MUM/2019[2014-15]Status: DisposedITAT Mumbai04 Feb 2021AY 2014-15

Bench: Hon’Ble Shri Amarjit Singh, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am (Hearing Through Video Conferencing Mode) आयकरअपील सं./ I.T.A. No.4281/Mum/2019 (िनधा"रण वष" / Assessment Year: 2014-15) & आयकरअपील सं./ I.T.A. No.4282/Mum/2019 (िनधा"रण वष" / Assessment Year: 2015-16) Income Tax Officer-6(1)(3) M/S. Bebanco Developers Limited Room No.508, 5Th Floor बनाम/ Shiv Sagar Estate, Block A, 2Nd Floor Aaykar Bhavan, M.K. Road Dr. Annie Besant Road, Worli Vs. Mumbai-400 020. Mumbai-400 018. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadcb-9977-B (अपीलाथ"/Appellant) (""थ" / Respondent) : Revenue By : Shri Tharian Oommen-Ld. Dr Assessee By : Shri Satish Mody-Ld. Ar

For Appellant: Shri Satish Mody-Ld. ARFor Respondent: Shri Tharian Oommen-Ld. DR
Section 143(3)

…Lohegaon project. Thus the argument of the AO is incorrect. It is not the case where funds were borrowed for the purpose of business and the excess funds were parked by the company for earning interest income, covered by the Tuticorin Alkali Chemicals [1997] 227 ITR 172(SC). This is a case where the funds for the Lohegaon project were transferred separately and the loan to GBL in the books of the holding company was transferred to the assessee along equal liability. Therefore there is direct nexus of loan (asset) with loan (liability) in the books of the assessee company. 4. After considering the totality of fac…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Income Tax Officer, Ward- 1(1)(2), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1521/BANG/2019[2015-16]Status: DisposedITAT Bangalore27 Jan 2021AY 2015-16

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Income Tax Officer, Ward - 1(1)(2), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1520/BANG/2019[2014-15]Status: DisposedITAT Bangalore27 Jan 2021AY 2014-15

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1519/BANG/2019[2013-14]Status: DisposedITAT Bangalore27 Jan 2021AY 2013-14

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1518/BANG/2019[2012-13]Status: DisposedITAT Bangalore27 Jan 2021AY 2012-13

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle- 11(1), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1517/BANG/2019[2011-12]Status: DisposedITAT Bangalore27 Jan 2021AY 2011-12

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Alpha Design Technologies Private Limited, Bangalore vs. Income Tax Officer, Ward- 1(1)(2), Bangalore

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 1516/BANG/2019[2009-10]Status: DisposedITAT Bangalore27 Jan 2021AY 2009-10

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Prashanth Chandrashekar, CAFor Respondent: Shri Kannan Narayanan, Jt.CIT(DR)(ITAT), Bengaluru
Section 14Section 143(3)Section 148Section 37

…the books of account and claimed it as a revenue expenditure in the computation of income, is of no consequence. The Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd (supra) and also thereafter in the case of Tuticorin Alkali Chemicals vs. CIT 227 ITR 172 (SC) and Sutlej Cotton Mills Ltd. vs. CIT 116 ITR 1 (SC) has supported the proposition that the entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the tra…

M/S. Meghmallar Eastate & Services (P) Ltd., Guwahati vs. Income Tax Officer, Ward-3(2), Guwahati

In the result, the three appeals of the assessee are partly allowed

ITA 94/GTY/2020[2014-15]Status: DisposedITAT Guwahati15 Jan 2021AY 2014-15

Bench: Shri A. T. Varkey, Jm]

Section 57

…menced and, therefore, it is clear that the inierest income was required to be taxed and cannot be allowed to be set-off with the interest cost [Refer the judgment of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. (1997) 227 ITR 172], Further, the Appellant has not been able to prove as to how the interest received was "inextricably linked" with the capital WIP and, thus, it is clear that the interest income was liable to be taxed. 3 | P a g e ITA Nos. 92,93 & 94/GAU/2020 M/s Meghmallar Estates & Services Pvt. Ltd. A.Ys. 2012-13 to 2014-15 Also, in the absence of linkag…

M/S. Meghmallar Eastate & Services (P) Ltd., Guwahati vs. Income Tax Officer, Ward-3(2), Guwahati

In the result, the three appeals of the assessee are partly allowed

ITA 93/GTY/2020[2013-14]Status: DisposedITAT Guwahati15 Jan 2021AY 2013-14

Bench: Shri A. T. Varkey, Jm]

Section 57

…menced and, therefore, it is clear that the inierest income was required to be taxed and cannot be allowed to be set-off with the interest cost [Refer the judgment of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. (1997) 227 ITR 172], Further, the Appellant has not been able to prove as to how the interest received was "inextricably linked" with the capital WIP and, thus, it is clear that the interest income was liable to be taxed. 3 | P a g e ITA Nos. 92,93 & 94/GAU/2020 M/s Meghmallar Estates & Services Pvt. Ltd. A.Ys. 2012-13 to 2014-15 Also, in the absence of linkag…

M/S. Meghmallar Eastate & Services (P) Ltd., Guwahati vs. Income Tax Officer, Ward-3(2), Guwahati

In the result, the three appeals of the assessee are partly allowed

ITA 92/GTY/2020[2012-13]Status: DisposedITAT Guwahati15 Jan 2021AY 2012-13

Bench: Shri A. T. Varkey, Jm]

Section 57

…menced and, therefore, it is clear that the inierest income was required to be taxed and cannot be allowed to be set-off with the interest cost [Refer the judgment of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. (1997) 227 ITR 172], Further, the Appellant has not been able to prove as to how the interest received was "inextricably linked" with the capital WIP and, thus, it is clear that the interest income was liable to be taxed. 3 | P a g e ITA Nos. 92,93 & 94/GAU/2020 M/s Meghmallar Estates & Services Pvt. Ltd. A.Ys. 2012-13 to 2014-15 Also, in the absence of linkag…

M/S Jaypee Powergrid Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is allowed

ITA 239/DEL/2016[2010-11]Status: DisposedITAT Delhi05 Jan 2021AY 2010-11

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 239/Del/2016 : Asstt. Year : 2010-11 M/S Jaypee Powergrid Ltd., Vs Income Tax Officer, 63, Ja House, Basant Lok, Vasant Ward-4(1), Vihar, New Delhi-110057 New Delhi (Appellant) (Respondent) Pan No. Aabcj8054F Assessee By : Sh. Vinod Garg, Adv. Revenue By : Ms. Apoorva Bhardwaj, Sr. Dr

For Appellant: Sh. Vinod Garg, AdvFor Respondent: Ms. Apoorva Bhardwaj, Sr. DR

…) and Bokaro Steel Ltd. (supra) at length, held at pages 258, 259 and 260 of report, i.e., 315 ITR 255, as under:- 5. In our opinion the Tribunal has misconstrued the ratio of the judgment of the Supreme Court in the case of Tuticorin Alkali Chemicals [1997] 227 ITR 172 and that of Bokaro Steel Ltd. [1999] 236 ITR 315. The test which permeates through the judgment of the Supreme Court in Tuticorin Alkali Chemicals [1997] 227 ITR 172 is that if funds have been borrowed for setting up of a plant and if the funds are 'surplus' and then by virtue of that circumstance they are invested in fixed deposits the income ea…

Sugam Vanijya Holdings P.Ltd, Bengluru vs. DCIT, Circle-24(2), New Delhi

Appeal of the assessee is partly allowed

ITA 9502/DEL/2019[2015-16]Status: DisposedITAT Delhi23 Dec 2020AY 2015-16

Bench: Shri G.S.Pannu, Hon’Ble & Ms Suchitra Kamblesugam Vanijya Holdings Vs Dcit Private Limited Circle-24(2) Vr Bengaluru, No. 11B, C.R.Building, Survey No. 40/9, New Delhi-110002 Dyvasandra Industrial Area 2Nd Stage, Kr Puram Hobli, Bengaluru- 560048 (Appellant) (Respondent) Appellant By Sh. Kanchan Kaushal, Sh. Harpreet Ajmani, Adv. Respondent By Sh. Anupham Kant Garg, Cit-Dr Date Of Hearing 25.09.2020 Date Of Pronouncement 23.12.2020

Section 143Section 144CSection 32Section 37Section 56Section 57

…s dated 5/3/2014 which is later to the decision in case of India Oil Panipat Power Consortium Ltd. Case. The Ld. DR submitted that in this case CIT(A) Vs. Bokaro Steel Ltd. 236 ITR 315 was distinguished and Kutthikoli Chemicals and Fertilizers Ltd. Vs. CIT(A) 227 ITR 172 (S.C) was relied upon and followed. The Ld. DR submitted that the Tribunal’s decision for Assessment Year 2013-14 in assessee’s case did not discuss the decision of Jurisdictional High Court in case of Indian Vaccines Corporation Ltd. (Supra) which is also on the same issued and a more recent decision. The important distinction in case of Indian…

Joint Commissioner of Income Tax (OSD) Circle-4(1)(1), Bangalore vs. M/S Karnataka Road Developemnt Corporation Limited, Bangalore

In the result appeal filed by revenue in ITA No

ITA 935/BANG/2018[2013-14]Status: DisposedITAT Bangalore27 Nov 2020AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri. B. J. Shetty, CAFor Respondent: Shri. Pradeep Kumar, CIT(DR)
Section 43B

…he matter is listed for admission, with the consent of the parties the matter is taken for final disposal. 7. The learned counsel Sri K V Aravind placed reliance on the Judgment of the Apex Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT[1997] 227 ITR 172/93 Taxman 502 and argued that the proceedings of Government of Karnataka by which a sum of Rs. 10.00 crores was granted to the assessee did not contain any condition with respect to the utilization of interest. The assessee being a company engaged in trading of agriculturalproduce is not entitled to the benefit of interest earned from the fixed d…

M/S. Havells India Ltd., New Delhi vs. ACIT, New Delhi

The appeal of the assessee is partly allowed for statistical purpose

ITA 4695/DEL/2012[2008-09]Status: DisposedITAT Delhi10 Nov 2020AY 2008-09

Bench: Shri Anil Chaturvedi & Ms Suchitra Kamble(Through Video Conferencing) Vs Havells India Ltd. Acit 1, Raj Narian Marg, Ltu Civil Lines New Delhi New Delhi Aaach0351E (Respondent) (Appellant)

Section 251Section 40Section 80I

…mption of shares. The Ld. AR submitted that it is trite law that every receipt is not income. The Ld. AR relied upon the following decisions: i) CIT vs. Shaw Wallace and Company: 2 Comp Cases 276 (SC) ii) Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT 227 ITR 172 (SC) iii) Cadell Weaving Mills Company Ltd vs. CIT 249 ITR 266 (Bom) [affirmed by SC in 273 ITR 1] The Ld. AR further submitted that the nature of the foreign exchange gain shall depend upon the nature of the transaction – if the transaction of remittance is for revenue account purpose, then, exchange gain/ loss shall be revenue income/ gain, w…

N.G. Group, Navi Mumbai vs. ITO, Ward- 28 (2)(3) (Erstwhile Ward 22 (3)(3)), Mumbai

In the result, appeal of the assessee is partly allowed as indicated above

ITA 6244/MUM/2018[2010-11]Status: DisposedITAT Mumbai09 Nov 2020AY 2010-11

Bench: Shri C.N. Prasad, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. N.G. Group V. Income Tax Officer Plot No. 8, Sector 11, Ward-28(2)(3) Opp. Juinagar Railway Station [Erstwhile Ward-22(3)(3)] Sanpada, Navi Mumbai - 400 709 3Rd Floor, Room No. 317, Tower No. 6, Vashi Railway Station Complex Vashi, Navi Mumbai - 400 705 Pan: Aaffn9159E (Appellant) (Respondent)

For Appellant: Shri Rohan OchaniFor Respondent: Mrs. Kavita P. Kaushik
Section 68

…tage for the current year, no expenditure that may have been incurred by it during the year is connected to the earning of interest. Referring to the decision of the Hon'ble Supreme Court in the case of M/s. Tuticorin Alkali Chemicals and Fertilizers Limited [227 ITR 172], Assessing Officer observed that an amount of ₹.52,27,162/- received by the assessee on account of interest charged to partners is an independent source not connected with construction activities. Accordingly, he brought to tax the said income under the head “income from other sources”. Before the Ld.CIT(A) the assessee contended that interest r…