LAWS(DLH)-2012-4-484

POLYPLEX CORPORATION LTD Vs. CIT

Decided On April 27, 2012
Polyplex Corporation Ltd Appellant
V/S
CIT Respondents

JUDGEMENT

(1.) WE have heard counsel for the parties in this appeal, which pertains to the assessment year 2001 -02. The following substantial questions of law are framed:

(2.) AS regards question no.(ii) findings of the Tribunal are as under: -

(3.) IN this case, the assessee has stated that they had earned interest income of Rs.11,31,088/ - on FDRs from bank for availing various facilities availing like margin money, packing credit, etc. The Tribunal has not examined the factual matrix and has merely affirmed the decision of the CIT(Appeals) that interest received is assessable under the head "other sources". Accordingly we pass an order of remit to the Tribunal to factually examine the aforesaid aspect and if it is found that the interest income earned on the FDRs is assessable under the head "business income", netting off the same against interest paid will be permitted and allowed in terms of the directions of the Supreme Court in the case of ACG Capsules (P.) Ltd. (supra). Question No. (ii) is also, therefore, answered in negative i.e. in favour of the appellant -assessee and against the respondent -revenue.