1990 (1) TMI 4

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..... ourt under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the income from fixed deposits was rightly ordered to be assessed as the assessee's income under the head 'Income from other sources'?" The assessment year involved is 1977-78 for which the relevant year of account Is the year ending December 31, 1976. The facts as set out in .....

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..... eposits could not be said to be trading assets of the assessee. On second appeal by the assessee, the Tribunal upheld the conclusion of the Commissioner (Appeals) with the following observations : " After due consideration of the rival submissions, the orders of the authorities and the paper book filed, we hold that from the very nature of the business carried on by the assessee investment in sh .....

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..... ittance to the foreign shipping principals by obtaining the permission of the Reserve Bank of India which is said to involve inevitable delay. No policy of the Reserve Bank of India or the terms and conditions of remittance or adjustment to the foreign shipping principals or their accounts were furnished in support of the plea that the deposits were made only against the liabilities due to the for .....

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..... r consideration of relevant facts and submissions found that the assessee had not successfully made out the case before the Tribunal that the holding of short-term deposits and fixed deposits was only to facilitate the remittance to the foreign shipping principals by obtaining permission of the Preserve Bank of India which is said to involve inevitable delay. No policy of the Reserve Bank of India .....

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..... custody, the assessee kept it in a bank. Evidently, the object was not to earn interest. It was only a mode of keeping the funds. In that case, the assessee was a public limited company set up by the Government of Andhra Pradesh to encourage and stimulate industrial development in the State. The principle laid down in the case of the Andhra Pradesh High Court is not applicable in the facts and ci .....

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