INDIA METAL ONE STEEL PLATE Vs. DEPUTY COMMISSIONER OF INCOME
HIGH COURT OF MADRAS (AT: MADURAI)
India Metal One Steel Plate
DEPUTY COMMISSIONER OF INCOME
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V.BHAVANI SUBBAROYAN, J. -
(1.) This appeal filed by the assessee under Section 260 A of the 'Income Tax Act, 1961' ( hereinafter referred to as the Act) is directed against the order dated 27.11.2018 passed by Income Tax Appellate Tribunal, Chennai 'A' Bench (for short, the Tribunal) in ITA.No.3497/CHNY/2016 for the Assessment Year 2012-13.
(2.) The assessee has raised the following substantial questions of law:
"1) Whether, in law, the Tribunal was right in holding that interest earned on short term deposits out of equity funds for purchase of assets, prior to commencement of business, is not a capital receipt but is taxable as "Income from Other Sources"?
2) Whether, in law, the Tribunal was right in not allowing the expenditure for earning interest income?
3) Whether, in law, the Tribunal having held that interest income should be considered as a revenue receipt chargeable to tax, then the Tribunal ought to have consequentially held that the expenditure of Rs.2,55,75,842 debited to Profit and Loss Account should be allowed as a deduction? and
4) Whether, in law, the Tribunal was right in not appreciating that since the interest is directly related to the manufacturing facility, it should be added to the Capital Work in Progress?"
(3.) We have heard Mr.SP.Chidambaram, learned counsel appearing for the appellant/assessee and Mr.Karthick Renganathan, learned Senior Standing Counsel assisted by Mr.S.Rajesh, learned counsel for respondent Revenue.;
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