The Commissioner Of Income Tax – 10, Mumbai v. M/S.common Effluent Treatment Plant

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.2225 OF 2008 The Commissioner of Income Tax – 10, Mumbai ..Appellant. Versus M/s.Common Effluent Treatment Plant ..Respondent. Mr.Suresh Kumar for the appellant. Mr.S.N. Inamdar with Ms.Aasifa Khan for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 17 June, 2010. P.C. : 1.The appeal by the Revenue under Section 260A of the Income Tax Act, 1961 arises out of the decision of the Income Tax Appellate Tribunal dated 24 January 2008 for assessment year 1997-98. The appeal has been admitted on the following substantial question of law : “Whether on the facts and in the circumstances of the case, the Tribunal was right in law in not upholding the decision of ld CIT (A), that the interest of Rs.3.66 lac on bank fixed deposits, other deposits are chargeable to tax, without appreciating the fact that interest income from Fixed Deposit are not derived from mutual activity and therefore, chargeable to tax ?” 2.The learned Counsel appearing on behalf of the assessee and the Counsel appearing for the Revenue are agreed in stating before the Court that in view of the judgment delivered today in a companion appeal, being Income Tax Appeal No.2060 of 2009, the issue in so far as bank fixed deposits are concerned would have to be answered in favour of the Revenue and against the assessee. Ordered accordingly. 3.In so far as the exigibility of other deposits to tax is concerned, for the reasons already indicated in the companion appeal, the issue is restored to the file of the Income Tax Appellate Tribunal for fresh decision. 4.The appeal is accordingly disposed of. There shall be no order as to costs. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)