COMMISSIONER OF INCOME TAX Vs. RASSI CEMENT LIMITED

JUDGEMENT

(1.) AT the instance of the Revenue, the following two questions are referred :

(2.) IN respect of the first question as well as in respect of the amounts of Rs. 18,909, Rs. 1,506 and Rs. 17,301, referred to in the second question which represent the interest earned on surplus funds deposited in the banks during the installation of the company, the status of the company before the commencement of the business, it has been held in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT that such interest has to be separately treated as income and cannot be taken as part of the capital structure. IN the circumstances, question No. 1 and on this aspect question No. 2 are answered in the negative and against the assessee.