Income Tax Appeal v. Heard

mmj 1 ITXA NO.3129/09 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3129 OF 2009 The Commissioner of Income Tax-23: Appellant.VersusM/s.Kumagai Skanska HCC ITOCHU group: Respondent. Mr.Suresh Kumar for the Appellant.Mr. Sanjiv M Shah for the Respondent. CORAM :J P DEVADHAR AND R M SAVANT, JJ.DATED :29[th] NOVEMBER 2010 P.C. Heard. Perused Appeal. 2Admit on the following substantial question of law :- “(i)Whether on the facts and in the circumstances of the case and in law the Hon’ble Tribunal was correct in holding that interest earned on deposits amounting to Rs.2,22,75,000/- was to be adjusted against the value of work in progress and not to be treated as income from other sources ? “(ii)Whether on the facts and in the circumstances of the case and in law the Hon’ble Tribunal was correct in holding that interest earned on short term bank deposits by the Assessee is chargeable to tax under the head “income from business or profession” where the said interest income earned from short term fixed deposits was not related to the business activity of the Assessee? Mr. Sanjiv shah, the learned counsel appearing for the Respondent waives notice for the Respondent. [R.M.SAVANT, J] [J P DEVADHAR, J]