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 371,886 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

Commissioner of Income Tax-V N vs. Damanjit Singh

ITA/166/2000HC Delhi12 Jan 2007

…activity. 6.2 In support of the above propositions, reliance is placed upon the judgments of the Hon'ble Supreme Court in Parimisetti Seetharamamma v. CIT Andhra Pradesh (1965) 57 ITR 532 (SC), Tuticorin Alkali Chemicals & Fertilisers v. CIT (1997) 227 ITR 172 (SC), Pandian Chemicals Ltd. v. CIT (2003) 262 ITR 278 (SC) and of this Court in ACIT v. Netar Krishana Sehgal (1983) 141 ITR 681 (Del). 6.3 Reliance is next placed by the Department on the judgments of the High Courts interpreting Section 80HHC itself. These include that of the Madras High Court in K.S.Subbiah Pillai v. CIT (2003) 2…