COLLIS LINE PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner is a shipping company. During the accounting year relevant to the assessment year 1975-76 the petitioner earned interest on money invested in bank. The question is whether that interest is income from profits and gains of business or income from other sources. If it is the former, the petitioner is entitled to set off the unabsorbed development rebate against that income as provided under S.33 of the Income Tax Act. On the other hand, if such interest is income from other sources as held by the respondent Commissioner of Income Tax in the impugned order Ext. P3, then the set off is not permissible.

(2.) S.33(1)(a) reads:-

(3.) The petitioner's counsel points out that one of the objects of the company was to lend money and to invest and deal with money. He reads Para.10 and 13 of the Memorandum of Association: