Shri Chhatrapati Ssk Ltd v. Joint Commissioner Of Income Tax

-1- IN THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. Income Tax Appeal No. 1152 of 2004 Shri Chhatrapati SSK Ltd. ..Appellant vs. Joint Commissioner of Income Tax ..Respondent Mr.S.N.Inamdar for appellant Mr.P.S.Sahadevan for respondent. CORAM: Dr.S.RADHAKRISHNAN &S.J.KATHAWALLA JJ. 4th September,2008 CORAM: Dr.S.RADHAKRISHNAN & S.J.KATHAWALLA JJ. 4th September,2008 P.C. P.C. 1. Heard the learned Counsel appearing for the appellant and the learned Counsel appearing for the respondent. 2. The above appeal is admitted on the following two substantial questions of law. "a) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that non refundable deposits collected from members as per bye laws constitute trading receipts/income in the hands of the Appellant? b) Whether on the facts and in the circumstances -2- of the case, the Appellate Tribunal was justified in law in holding that interest paid by the Appellant on the said non refundable deposits constitute trading receipt of the Appellant and hence taxable in its hands? 3. By consent of both parties the appeal is taken up for final hearing. As far as first question mentioned hereinabove is concerned, both the learned Counsel categorically state that the said question of law has already been answered in favour of the assessee and against the revenue in the case of Siddheshwar Sahakari Sakhar Karkhana Ltd. Vs. Commissioner of Income Tax and others reported in 270 ITR 1. In view thereof first question is answered in favour of the assessee and against the revenue. 4. As far as second question of law is concerned, the same has already been answered in favour of the assessee and against the revenue by judgment of this Court in the case of Commissioner of Income Tax Vs. Malegaon Sahakaria Sakhar Karkhanaa Ltd. reported in 279 ITR 19 (Bom). Accordingly the second question is answered in favour of the assessee and against the revenue. The appeal stands disposed of accordingly. No order as to costs. -3- (S.J.KATHAWALLA J.) (Dr.S.RADHAKRISHNAN J.) (S.J.KATHAWALLA J.) (Dr.S.RADHAKRISHNAN J.) (S.J.KATHAWALLA J.) (Dr.S.RADHAKRISHNAN J.)