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Commissioner Of Income Tax vs Koshika Telecom Ltd. on 13 February, 2006 cites

Tuticorin Alkali Chemicals And ... vs Commissioner Of Income Tax, Madras on 8 July, 1997

1. The respondent-assessed is engaged in the business of operating cellular mobile telephone services. In terms of a license awarded in its favor for operation of the said services in the States of Uttar Pradesh, Bihar, Orissa and West Bengal, the assessed was required to provide finance and performance (of) bank guarantees to the Department of Telecommunications. The assessed appears to have arranged these bank guarantees from IFCL, NICL and Lord Krishna Bank. These institutions had in connection with the furnishing of the guarantees required deposit of margin money by the assessed, Interest earned/accrued on these margin money deposits became the subject-matter of a dispute in the asst. yr. 1996-97. The AO was of the view that interest on such deposits had to be taxed as income from other sources. Reliance was in support of that view placed by the AO on a Supreme Court decision in Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT .
Supreme Court of India Cites 23 - Cited by 796 - Full Document

Commissioner Of Income-Tax Bihar-Ii, ... vs Bokaro Steel Limited, Bokaro on 18 December, 1998

4. We have heard Mr. Jolly, learned Counsel for the Revenue, and perused the record. The finding of fact recorded by the CIT(A) and affirmed by the Tribunal is to the effect that the deposit of the margin money by the assessed with the banks was inextricably linked to the furnishing of the bank guarantees by the assessed to the Department of Telecommunications for obtaining a license. That finding in our view concludes the controversy inasmuch as if the deposits were indeed inextricably linked to the business of the assessed, the question whether the income accruing on the said deposits would constitute business income stands answered by the decisions of Supreme Court in Bokaro Steel (supra) and Karnal Co-operative Sugar Mills' case (supra). Both these decisions are in our view sufficient authority for the proposition that where the income in the nature of interest flows from deposits made by the assessed which deposits are in turn inextricably linked to the business of the assessed, the income derived on such deposits cannot be treated as income from other sources.
Supreme Court of India Cites 9 - Cited by 372 - S V Manohar - Full Document

Commissioner Of Income-Tax vs Karnal Co-Operative Sugar Mills Ltd. on 23 April, 1999

4. We have heard Mr. Jolly, learned Counsel for the Revenue, and perused the record. The finding of fact recorded by the CIT(A) and affirmed by the Tribunal is to the effect that the deposit of the margin money by the assessed with the banks was inextricably linked to the furnishing of the bank guarantees by the assessed to the Department of Telecommunications for obtaining a license. That finding in our view concludes the controversy inasmuch as if the deposits were indeed inextricably linked to the business of the assessed, the question whether the income accruing on the said deposits would constitute business income stands answered by the decisions of Supreme Court in Bokaro Steel (supra) and Karnal Co-operative Sugar Mills' case (supra). Both these decisions are in our view sufficient authority for the proposition that where the income in the nature of interest flows from deposits made by the assessed which deposits are in turn inextricably linked to the business of the assessed, the income derived on such deposits cannot be treated as income from other sources.
Supreme Court of India Cites 2 - Cited by 170 - Full Document
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