COMMISSIONER OF INCOME TAX Vs. NEHA PROTEINS LTD

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue, against the judgment of the learned Tribunal, dt. 18th March, 2004 [reported as Neha Proteins Ltd. v. Asstt. CIT (2004) 83 TTJ (Jd) 236.], partly allowing the appeal of the assessee and holding that the assessee is entitled to set off interest earned by it on the deposits of the public issue money, against the expenses incurred for the public issue, and for this finding, the learned Tribunal has relied upon the judgment of the Hon'ble Supreme Court, in CIT v. Bokaro Steel Ltd. : [1999]236ITR315(SC) .

(2.) THE appeal was admitted vide order dt. 10th Aug., 2005, by framing the following substantial question of law:

(3.) AGGRIEVED of this, the assessee filed an appeal before the learned CIT(A), and the learned CIT(A), in paras 18 and 19 dealt with this controversy, and held, that the AO was justified in taxing the interest received by the assessee on deposits of share application money in bank, as income under the head other sources, and the appellant was not entitled to set off, in respect of this income against expenses, and for that purpose the learned CIT(A) relied upon the judgment of the Hon'ble Supreme Court in CIT v. Coromandal Cements Ltd. (1999) 153 CTR (SC) 209 : (1998) 234 ITR 412 .