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Commissioner of Income Tax Vs. Water and Power Development Consultancy Services (India) Ltd. - Court Judgment

LegalCrystal Citation
Subject Direct Taxation
CourtDelhi High Court
Decided On
Case NumberNo. 227 of 1979
Judge
Reported in[1987]163ITR329(Delhi)
ActsIncome Tax Act, 1961 - Sections 256(2)
AppellantCommissioner of Income Tax
RespondentWater and Power Development Consultancy Services (India) Ltd.
Excerpt:
- .....this year on short term bank deposit is a business income though 'earning of such interest is neither the normal business activity nor incidental to the business of assessed company '? 2. the only dispute regarding the said sum is whether it should be classified under the held 'business' or under the head other sources'. we are of the view that this raises a question of law. we would accordingly direct the tribunal to state a case regarding the above question of law to this court. parties will bear their own costs.
Judgment:

D.K. Kapur, J.

1. This application u/s. 256(2) of the IT Act, 1961, seeks a reference on the following question :

'Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding the view that interest of Rs. 99,730 earned by the assessed during this year on short term Bank Deposit is a business income though 'earning of such interest is neither the normal business activity nor incidental to the business of assessed company '?

2. The only dispute regarding the said sum is whether it should be classified under the held 'business' or under the head other sources'. We are of the view that this raises a question of law. We would accordingly direct the Tribunal to state a case regarding the above question of law to this court. Parties will bear their own costs.


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