2006 (3) TMI 125

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..... uring the relevant assessment year. It had, all the same, parked its surplus funds with different companies and earned interest from the same. Relying upon the decision of the Supreme Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172, the interest income was taken as taxable income in the hands of the assessee from other sources. There is, in our opinion, no erro .....

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..... of money was income from other sources, no matter that the amount invested had been borrowed by the assessee for purchase of plant and machinery. To the same effect is the decision of the Supreme Court in CIT v. Dr. V.P. Gopinathan [2001] 248 ITR 449. The assessee had in that case invested money in a fixed deposit and earned interest on the same. He had also borrowed a loan and paid interest on .....

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..... h the company had incurred could be disallowed. It was argued by counsel appearing for the appellant that the company had commenced business but since no business was actually transacted, the expenses incurred by it could not be allowed. The authorities below have concurrently held that the company has not transacted any business. That finding is conclusive so far as this court is concerned. If no .....

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