- (1.) The appeal is directed against a judgment and order dated 30th April, 2008 passed by the Income Tax Appellate Tribunal "A" Bench in ITA Nos.2366 to 2369(Kol) of 2007 pertaining to the assessment years 2000 -2001, 2001 -2002, 2003 -2004 and 2004 - 2005. The appeal of the assessee was allowed by the Tribunal.
(2.) The aggrieved revenue has come up in appeal. The question of law formulated at the time of admission of the appeal reads as follows: - "Whether the interest income of pre -operative period on short term deposit is to be taxed under the head income from other sources -
(3.) The question whether the income -tax is to be taxed under the head 'income from other sources or under any other head depended on the further question as to whether the assessee was incorporated with a profit motive. The assessing officer and the CIT held that the assessee was incorporated with a motive to earn profit but the learned Tribunal took the following view: - "In view of the above, only conclusion that can be drawn is that this corporation was incorporated for the exclusive works of rural electrification in the state of West Bengal by utilizing the grant/loan received from the Government. There was no profit motive and the interest earned on borrowed funds was to be utilized only for the purpose of setting up of rural electrification network. The assessee was not carrying out any business activity while engaged in this rural electrification programme of West Bengal. This infrastructure so prepared by the assessee company was to be handed over to WBSEB for distribution of the electricity, the revenue, if any, to be earned was to be earned by the WBSEB and not the assessee. Hence, it cannot be said that assessee company was in preoperative stage." ;