The Commissioner Of Income Taxcentral-Iii, Mumbai v. M/S. Bhavani Gems

IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. INCOME TAX APPEAL NO.1408 OF 2008 The Commissioner of Income TaxCentral-III, Mumbai ..Appellant. Vs. M/s. Bhavani Gems..Respondent. .... Mr. Suresh Kumar for the Appellant. Mr. Deepak Tralshawala with Mr. V.S. Hadade for the Respondent..... CORAM : DR. D.Y.CHANDRACHUD & J.P. DEVADHAR, JJ. P.C.: 3 May, 2010. The Appeal has been admitted on the following substantial question of law : “Whether on the facts and in the circumstances of the case and in law, the Hon’ble ITAT was legally correct in treating interest income earned by the assessee on fixed deposits kept with Banks as ‘Business Income’ instead of ‘Income From Other Sources’ and allowing netting of interest for the purpose of deduction u/s. 80HHC of the Act?” Counsel appearing on behalf of the assessee and counsel appearing on behalf of the Revenue are agreed in stating before the Court that in view of the judgments of this Court in Commissioner of Income Tax v. Asian Star Company Ltd. (ITA 200 of 2009 decided on 18/19 March 2010) and in Commissioner of Income Tax v. Swani Spice Mills Pvt. Ltd. (ITA 1019 of 2007 decided on 19 April 2010) the impugned order of the Tribunal dated 29 May 2006 may be set aside and the appeal may be remitted back to the Tribunal for decision in the light of the aforesaid judgments. In view of the statement made before the Court, the impugned order of the Tribunal dated 29 May 2006 to that extent is set aside and ITA 4098/Mum/2004 shall stand restored to the file of the Tribunal for decision on the aforesaid issue in view of the judgments of this Court. The Appeal is accordingly disposed of. There shall be no order as to costs. (Dr. D.Y.Chandrachud, J.) (J.P. Devadhar, J.)