- (1.) Heard Sri Manish Misra, learned counsel for appellant and Sri Namit Sharma, learned counsel for respondent.
(2.) These appeals under Section 260(A) of Income Tax Act, 1961 (hereinafter referred to as " Act 1961") have arisen from judgment and order dated 15.03.2016 passed by Income Tax Appellate Tribunal (hereinafter referred to as " Tribunal") in ITA Nos. 357/LKW/2015 and 358/LKW/2015, relating to Assessment Year (hereinafter referred to as " A.Y") 201112 and 2012-13.
(3.) Both these appeals were admitted on three substantial questions of law which are common and, therefore, same are being reproduced from ITA No. 88 of 2016:" (i) Whether the Income Tax Appellate Tribunal is justified in holding that interest income, earned on FDRs made out of the unutilised fund borrowed for the setting up of the business should be reduced from the cost of the project instead of taxing it as an income from other sources"." (ii) Whether the Income Tax Appellate Tribunal is justified in dismissing the department's appeal beyond the law laid down by the Hon'ble Apex Court in Tuticorin Alkali Chemical and Fertilizers Ltd. v. Commissioner of Income Tax (1997) 227 ITR (SC) and Commissioner of Income Tax v. Indo Gulf Fertilizers and Chemical Corporation Ltd. (2006) 280 ITR 261 (All) . (iii) "Whether the Income Tax Appellate Tribunal is justified in holding beyond the statutory provision of Section 56(2) of the Income Tax Act that income by way of interest on securities is taxable even if arises from the profits and gains of the business or profession".;