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TMI Blog2005 (2) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order of the CIT(A)-IV, Bangalore, dated 26-2-2003. 2. The only issue involved in this appeal is taxability of a sum of Rs. 1,89,025 as income for the year. This amount represents interest earned by the assessee-company. The Assessing Officer has taken the view that the assessee had not canvassed its business and therefore, interest is to be assessed as income from other sources. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvolve erection of machinery, power sanction etc. There is no pre-operation period or post-operation period. The Assessing Officer did not dispute the fact that the assessee had advanced monies for the purpose of fulfilling objectives of the Memorandum of Association of the company and earned interest income. The decision relied on by the Assessing Officer is factually distinguishable and not appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners for the purpose of acquiring and dealing in landed properties is not in dispute. Therefore, as rightly contended by the learned counsel for assessee, the moment company is incorporated and the amounts have been advanced for the purpose of acquiring and dealing in landed property, the business of the assessee should have been treated as commenced. Interest earned thereby cannot be treated as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t claim any relief under sections 70 and 71 since its business had not started and there could not be any computation of income or loss incurred by the assessee in the relevant accounting years. As rightly contended by the learned counsel for assessee, the decisions relied on by the authorities below are factually distinguishable. In the case of the assessee neither setting up factory or erection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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