Commissioner Of Income Tax vs Water & Power Development ...

Citation : 1984 Latest Caselaw 193 Del
Judgement Date : 21 May, 1984

Delhi High Court
Commissioner Of Income Tax vs Water & Power Development ... on 21 May, 1984
Equivalent citations: 1987 163 ITR 329 Delhi
Author: D Kapur
Bench: D Kapur, D Wadhwa

JUDGMENT D.K. Kapur, J.

1. This application u/s. 256(2) of the IT Act, 1961, seeks a reference on the following question :

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

2. The only dispute regarding the said sum is whether it should be classified under the held 'business' or under the head other sources'. We are of the view that this raises a question of law. 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.