The Shipping Corporation Of India Ltd, ... vs Dcit (Ltu), Mumbai on 2 November, 2018
9. In view of the above facts and legal position, we are of the
considered opinion that the issue requires factual verification to
ascertain whether the fixed deposits were placed for obtaining banking
facilities required for carrying on the shipping business of the assessee
or whether the same were independent investments. Accordingly, we
restore this issue to the file of the Assessing Officer with a direction to
examine the nature and purpose of the fixed deposits in the light of the
decision of the Tribunal in the case of Shipping Corporation of India
(supra) and other judicial precedents. The Assessing Officer shall also
consider the assessee's submission regarding interest of ₹65,701/-
relating to FDs not linked with overdraft facility. Needless to say, the
Assessing Officer shall afford adequate opportunity of being heard to
the assessee before deciding the issue.