1993 (9) TMI 344

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..... , 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 circumstances of the case, when the bus .....

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..... d 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 assessee has not seriously contested .....

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..... 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 clearly attracted and must be applied. Se .....

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