2018 (5) TMI 2147 - HC - Income Tax

Interest income earned towards the surplus funds lying with it - business income or income from other source - disallowance made on the provision for retirement benefits - AO had brought two amounts to tax on the one hand determining that the amounts derived constituted income from other sources on the other that such expenses could not be allowed under Section 37 - HELD THAT - Both issues are covered by decisions of this Court with respect to the question of treatment of the amounts derived as to whether they are business income or income from other source. The judgment in NTPC SAIL Power Co. Pvt. Ltd. 2012 (10) TMI 524 - DELHI HIGH COURT is conclusive and averse to the Revenue. The judgment in Commissioner of Income Tax v. Insilco Ltd. 2009 (2) TMI 31 - DELHI HIGH COURT has ruled against the assessee that such amounts are deductible under Section 37 of the Act. No substantial question of law.

Summary

The Delhi High Court dismissed the Revenue's appeal under Section 260A of the Income Tax Act, 1961. The two questions raised were about interest income earned by the assessee on surplus funds and the disallowance made on the provision for retirement benefits. The court referred to previous decisions and concluded that no substantial question of law arose, hence the appeal was dismissed.