2001 (7) TMI 4 - SC - Income Tax

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the items of income derived by the assessee during the formation period for the main business, were not taxable income but were to be adjusted against the project cost or the oil refinery and petrochemicals, the main business for which the company was set up - Held, yes

Summary

The Supreme Court allowed the appeal and modified the order, holding that income derived by the assessee during the formative period for the main business should be taxable, except for specific items like interest income. The decision was based on previous rulings, including CIT v. Bokaro Steel Ltd. The High Court's decision was modified accordingly.