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M/S TUTICORIN ALKALI CHEMICALS AND FERTILIZERS LTD., MADRAS vs. COMMISSIONER OF INCOME TAX, MADRAS

SCR Citation: [1997] Supp. (1) S.C.R. 528
Year/Volume: 1997/ Supp. (1)
Date of Judgment: 08 July 1997
Petitioner: M/S TUTICORIN ALKALI CHEMICALS AND FERTILIZERS LTD., MADRAS
Disposal Nature: Others
Neutral Citation: 1997 INSC 530
Judgment Delivered by: Hon'ble Mr. Justice S.C. Sen
Respondent: COMMISSIONER OF INCOME TAX, MADRAS
Case Type: TAX REFERENCE CASE /1/1992
Order/Judgment: Judgment
1. Headnote

Income Tax Act, 1961 - Sections 4, 56, 57 - Income from other sources - Taxability - Interest received by a company from bank deposits and loans - Income derived from funds borrowed for setting up the factory of the company - Company had not yet commenced its business - Whether interest derived by the assessee from borrowed funds, invested in short-term deposits would be chargeable to tax under the head 'Income from other sources' - Held, Yes - It should not be adjusted against the interest payable on borrowed funds.

2. Case referred
3. Act
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4. Keyword
  • Income Tax