Commissioner Of Income-Tax vs Water & Power Dev. Consultancy ...

Citation : 1984 Latest Caselaw 192 Del
Judgement Date : 21 May, 1984

Delhi High Court
Commissioner Of Income-Tax vs Water & Power Dev. Consultancy ... on 21 May, 1984
Author: D Kapur
Bench: D Kapur, D Wadhwa

JUDGMENT D.K. Kapur, J.

1. This application under section 256(2) of the Income-tax Act, 1961, seeks a reference on the following question :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding the view that the interest of Rs. 99,730 earned by the assessed during this year on short-term bank deposit is business income though the earning of such interest is neither the normal business activity nor incidental to the business of the assessed-company ?"

2. The only dispute regarding the said sum is whether it should be classified under the head "Business" or under the head Other sources". We are of the view that this raises a question of law and we would accordingly direct the Tribunal to state a case regarding the above question of law to this court. Parties will bear their own costs.