C.I.T. W.B.-IV, Calcutta v. M/s. Paharpur Coolin Towers Ltd
[Citation -2015-LL-0410-44]
| Citation | 2015-LL-0410-44 |
|---|---|
| Appellant Name | C.I.T. W.B.-IV, Calcutta |
| Respondent Name | M/s. Paharpur Coolin Towers Ltd. |
| Court | HIGH COURT OF CALCUTTA |
| Relevant Act | Income-tax |
| Date of Order | 10/04/2015 |
| Judgment | View Judgment |
| Keyword Tags | manufacture or production • business of construction • business or profession • industrial undertaking • computing deduction • eligible business • interest earned • interest income • plant |
| Bot Summary: | The C.I.T.(Appeals) found that the surplus funds of the assessee which were available temporarily were profitably utilised by making those investments and the income arising out of such investments 2 was a business income and did not lose eligibility under sub-section 2 of Section 32AB. In that view of the matter, the order of the assessing officer was set aside and the claim of the assessee was allowed. Whether on the facts and circumstances of the case, the Income-Tax Appellate Tribunal was justified in law in directing the Assessing Officer to treat the interest income as business income as against income from other sources 2. Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal erred in law in directing the Assessing Officer to treat the interest income from deposits, fixed deposits and bonds as business income for the purpose of computing deduction under Section 32AB of the Income Tax Act, 1961 We already have indicated that the CIT had allowed the benefit under section 32AB considering that the income arose out of eligible business as defined in sub-section 2 of section 32AB. Therefore, the questions, formulated at the time of admission of the appeal, can be reformulated as follows : 1. Whether the learned Tribunal was correct in holding that the interest income amounted to an eligible business within sub- section 2 of section 32AB 3 2. If the answer to the question no.1 is in the affirmative, whether the benefit of such interest income can be taken into account for the purpose of giving benefit under section 32AB Therefore, the principal question is, whether interest income can be treated to have arisen from an eligible business. What is an eligible business The answer is to be found from the definition of eligible business or profession which at the relevant time was worded as follows : eligible business or profession shall mean business or profession, other than The business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule carried on by an industrial undertaking, which is not a small scale industrial undertaking as defined in section 80HHA; The business of leasing or hiring of machinery or plant to an industrial undertaking, other than a small scale industrial undertaking as defined in section 80HHA, engaged in the business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule. Income arising out of interest is really an income arising out of eligible business. |