Al Wakeelo
Your Digital Lawyer, Always on Duty
Initializing Secure Chambers
Your Digital Lawyer, Always on Duty
Initializing Secure Chambers
Citation: 1971 PTD 252
Court: Madhya Pradesh High Court
Year: 1970
Decision Date: 1970-12-31
Parties: MADHYA PRADESH STATE INDUSTRIES CORPORATION LTD. vs COMMISSIONER JUDGMENT
Case cited as 1971 PTD 252
Court Name: Madhya Pradesh High Court Judge(s): P. V. Dixit, K. L. Pandey Title:MADHYA PRADESH STATE INDUSTRIES CORPORATION LTD. vs COMMISSIONER JUDGMENT Reported As: 1971 PTD 252 Result: N/A Judgment JUDGMENT DIXIT, C. J.-In this reference under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee, the question which has been referred for decision is: "Whether, on the facts and in the circumstances of this case, the sum of Rs. 20,856 received by way of interest by the assessee should be taxed under section 28 as business income or under section 56 as income from `other sources'?" The material facts are that the assessee, the Madhya Pradesh State Industries Corporation Ltd., is a Government private limited company. It was incorporated on 11th April 1961, for taking over and running certain concerns of the Government of Madhya Pradesh, namely, the Ratlam Power Alcohol Project, Spinning Mills, Sanawad, and the Cotton-seed Solvent Extraction Project, Ujjain. The shares in the company are held by the Government of Madhya Pradesh, the Madhya Pradesh Electricity Board, and the Director of Industries, M. P. Government. During the period covered by the assessm ent year 1962-63, of which the accounting year ended on 31st March 1962, the company did not actually carry on any business; there was also no production. This was a period of capital expenditure and installation of machinery and plant. The share money, which the company received from the Madhya…
Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.