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2007] 292 ITR 504 [2007] 159 TAXMAN 24 (DELHI) HIGH COURT OF DELHI International Marketing Ltd. v. Income-tax Officer T.S. THAKUR AND J.M. MALIK, JJ. IT APPEAL NO. 341 OF 2006 MARCH 10, 2006 Section 56 of the Income-tax Act, 1961 - Income from other sources - Chargeable as - Whether where assessee had not carried on any business during relevant assessment year and had, all same, parked its surplus funds with different companies and earned interest from same, such interest-income was taxable as income from other sources - Held, yes Section 57 of the Income-tax Act, 1961 - Income from other sources - Deductions - Assessing Officer, Commissioner and Tribunal had concurrently held that assessee had not carried on any business during relevant assessment year and it had parked its surplus funds with different companies and earned interest from same and assessed same as income from other sources - Tribunal, however had allowed some expenses to assessee for maintaining its status and deducted same out of income from other sources - Whether if no business had been transacted, there was no question of allowing any expenses in relation thereto - Held, yes - Whether, however, in absence of appeal filed by revenue against order of Tribunal, there was no reason to interfere with order of Tribunal - Held, yes CASES REFERRED TO Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT [1997] 227 ITR 172 / 93 Taxman 502 (SC) [Para 1], CIT v. Autokast Ltd. [2001]248 ITR 110 / 116 Taxman 244 (SC) [Para 2] and CIT v. Dr. V.P. Gopinathan [2001] 248 ITR 449/ 116 Taxman 489 (SC) [Para 3]. Vasdev Lalwani and S.S. Silwal for the Appellant. Ms. P.L. Bansal and Ms. Sonia Mathur for the Respondent. ORDER 1. The Assessing Officer, the Commissioner of Income-tax and the Income-tax Appellate Tribunal have concurrently held that the appellant- assessee had not carried on any business during 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 Fertilizers Ltd. v. CIT [1997] 227 ITR 1721 , the interest income was taken as taxable income…

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