Commissioner of Income-tax, Delhi-IV v. M/s. Dalmia Promoters & Devels. (P) Ltd
[Citation -2015-LL-0916-36]

Citation 2015-LL-0916-36
Appellant Name Commissioner of Income-tax, Delhi-IV
Respondent Name M/s. Dalmia Promoters & Devels. (P) Ltd.
Court SUPREME COURT
Relevant Act Income-tax
Date of Order 16/09/2015
Assessment Year 1993-94
Judgment View Judgment
Keyword Tags interest earned • other source
Bot Summary: IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 74/2007 COMMISSIONER OF INCOME TAX, DELHI-IV APPELLANT(S) VERSUS M/S. DALMIA PROMOTERS DEVELS.(P) LTD RESPONDENT(S) ORDER By an assessment order dated 29th February, 1996, with regard to Assessment Year 1993-94, the Assessing Officer held that interest earned from Fixed Deposits before business actually commenced would be taken under the head 'interest from other sources' and not under the head 'business income'. This was reversed by the Commissioner of Income Tax by its order dated 4 th September, 1996 taking into account inter alia the fact that for the previous three assessment years the assessee for similar interest from such fixed deposits had been held to come within the head 'business income' and following the principle of consistency, it was held that this would have to be for the Assessment Year 1993-94 as well. An appeal filed by the Revenue before the Income Tax Appellate Tribunal was dismissed on 1st October, 2004. Signature Not Verified The Revenue not being Digitally signed by ASHWANI KUMAR Date: 2015.09.22 satisfied went to the High Court of Delhi under Section 260A of the 15:43:45 IST Reason: Income Tax Act and vide judgment dated 17 th January, 2006 the appeal filed by the Revenue was dismissed on the said same ground viz. That 2 for the previous three years such income would have to be treated as business income. Shri Jaideep Gupta, learned senior counsel appearing on behalf of the Revenue has argued before us that in Tuticorin Alkali Chemicals Fertilizers Ltd. vs. Commissioner of Income-tax 227 ITR 172, this Court has held that in such a situation such income would have to be treated as interest from other source and not as business income. We are not going into this issue inasmuch as this appeal can be disposed of on the ground that consistency does demand that there being no change in circumstances, the income for the year 1993-94 would also have to be treated business income as for the previous three years.


IN SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 74/2007 COMMISSIONER OF INCOME TAX, DELHI-IV APPELLANT(S) VERSUS M/S. DALMIA PROMOTERS & DEVELS.(P) LTD RESPONDENT(S) ORDER By assessment order dated 29th February, 1996, with regard to Assessment Year 1993-94 (with which we are concerned in present case), Assessing Officer held that interest earned from Fixed Deposits before business actually commenced would be taken under head 'interest from other sources' and not under head 'business income'. This was reversed by Commissioner of Income Tax (Appeals) by its order dated 4 th September, 1996 taking into account inter alia fact that for previous three assessment years assessee for similar interest from such fixed deposits had been held to come within head 'business income' and, therefore, following principle of consistency, it was held that this would have to be for Assessment Year 1993-94 as well. appeal filed by Revenue before Income Tax Appellate Tribunal was dismissed on 1st October, 2004. Signature Not Verified Revenue not being Digitally signed by ASHWANI KUMAR Date: 2015.09.22 satisfied went to High Court of Delhi under Section 260A of 15:43:45 IST Reason: Income Tax Act and vide judgment dated 17 th January, 2006 appeal filed by Revenue was dismissed on said same ground viz.that 2 for previous three years such income would have to be treated as business income. There being no change in circumstances for Assessment Year 1993-94 same result would, therefore, have to follow. Shri Jaideep Gupta, learned senior counsel appearing on behalf of Revenue has argued before us that in Tuticorin Alkali Chemicals & Fertilizers Ltd. vs. Commissioner of Income-tax [227 ITR 172], this Court has held that in such situation such income would have to be treated as interest from other source and not as business income. This is resisted by learned counsel appearing on behalf of assessee. We are not going into this issue inasmuch as this appeal can be disposed of on ground that consistency does demand that there being no change in circumstances, income for year 1993-94 would also have to be treated business income as for previous three years. Accordingly, appeal is dismissed. ......................J. [A.K. SIKRI] ......................J. [ROHINTON FALI NARIMAN] NEW DELHI; SEPTEMBER 16, 2015. 3 ITEM NO.104 COURT NO.14 SECTION IIIA S U P R E M E C O U R T O F I N D I RECORD OF PROCEEDINGS Civil Appeal No(s). 74/2007 COMMNR. OF INCOME TAX, DELHI-IV Appellant(s) VERSUS M/S. DALMIA PROMOTERS & DEVELS. (P) LTD Respondent(s) Date : 16/09/2015 This appeal was called on for hearing today. CORAM : HON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN For Appellant(s) Mr. Jaideep Gupta, Sr. Adv. Mr. Rupesh Kumar, Adv. Mr. T.M. Singh, Adv. Mr. Pravesh Thakur, Adv. Mr. Jitin Singhal, Adv. Mr. B.K. Prasad, Adv. Ms. Anil Katiyar, Adv. Mr. B. V. Balaram Das,Adv. For Respondent(s) Ms. Kavita Jha,Adv. Ms. Roopali Gupta, Adv. UPON hearing counsel Court made following O R D E R civil appeal is dismissed in terms of signed order. (Ashwani Thakur) (Renu Diwan) COURT MASTER COURT MASTER (Signed Order is placed on file) Commissioner of Income-tax, Delhi-IV v. M/s. Dalmia Promoters & Devels. (P) Ltd
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