1993 (9) TMI 344

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..... r section 256(1) of the Income-tax Act, 1961 ('the Act'), the Tribunal has referred the following two questions ofjaw : to this Court for its opinion : 1. Whether, on the facts and in the circumstances of the case, the interest received from the deposits with a bank out of the money received from the public subscription was income from business ? 2. Whether, on the facts and in the circu .....

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..... garding taxability of above-referred income from interest. The second question is in respect of deductibility of share issue expense from above-referred income from interest. The Tribunal held that the income of the assessee from interest on the above-referred amounts deposited with the bank was liable to be assessed under the head 'Income from other sources'. The learned counsel for the a .....

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..... e expenditure on share issue should be deducted from the 'income from interest' from the deposit of share subscription amount referred to hereinabove. Since the above-referred income from interest is classified as income from other sources, the above-referred expenditure cannot be classified as business expenditure. It is obvious to us mat in this situation section 35D of the Act is clearl .....

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