The Tax Publishers2020 TaxPub(DT) 4197 (SC) : (2020) 272 TAXMAN 0092

INCOME TAX ACT, 1961

Section 261

Where the department preferred SLP to appeal against the judgment of Delhi High Court in Pr. CIT v. NTPC Sail Power Co. (P) Ltd. [ITA No. 570 of 2018, dated 15-5-2018], whereby the High Court following the judment in NTPC Sail Power Co. (P) Ltd. v. CIT (2012) 2310 Taxmann 358 (Del) : 2012 TaxubDT) 3140 (Del-HC) is conclusive and verse to the revenue. Following the same, issue was decided against the revenue. Held that interest earned by assessee on its surplus funds was taxable as business income and same could not be assessed as 'income from other sources, the Supreme Court considering the fact that the revenue sought to withdraw the matter due to low tax effect dismissed the SLP as withdrawn leaving question(s) of law open.

Appeal (Supreme Court) - Special leave petition - Business income - Interest income earned on surplus fund

Department preferred SLP to appeal against the judgment of Delhi High Court in Pr. CIT v. NTPC Sail Power Co. (P) Ltd. [ITA No. 570 of 2018, Order dated 15-5-2018] of Delhi High Court, whereby the High Court following the judment in NTPC Sail Power Co. (P) Ltd. v. CIT (2012) 2310 Taxmann 358 (Del) : 2012 TaxubDT) 3140 (Del-HC) is conclusive and verse to the revenue. Following the same, issue was decided against the revenue. Held that interest earned by assessee on its surplus funds was taxable as business income and same could not be assessed as 'income from other sources. Held: Counsel for the petitioner, on instructions issued by the Department of Revenue, Ministry of Finance vide F.No. 390/Misc./116/2017-JC, dated 22-8-2019, sought permission to withdraw this special leave petition along with pending applications therein due to low tax effect. Permission was granted, subject to just exceptions. The special leave petition and pending applications were dismissed as withdrawn, leaving question(s) of law open.

REFERRED :

FAVOUR : SLP dismissed as withdrawn.

A.Y. :

IN THE SUPREME COURT OF INDIA

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