1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR -------------------------------------------------------- 1. INCOME TAX APPEAL No. 81 of 2006 C I T UDAIPUR V/S M/S KANDHRI RUBBERS LTD UDAIPUR 2. INCOME TAX APPEAL No. 38 of 2006 C I T UDAIPUR V/S M/S KANDHARI RUBBERS (P) LTD Mr. K K BISSA, for the appellant / petitioner Date of Order : 23.9.2008 HON'BLE SHRI N P GUPTA,J. HON'BLE SHRI KISHAN SWAROOP CHAUDHARI,J. ORDER ----- The controversy involved in these matters is squarely covered by the judgment of this Court dt. 25.4.2008 passed in I.T. Appeal No. 79/2005 C.I.T. Jodhpur Vs. M/s. Kansara Modler Ltd. Learned counsel for the appellant drew our attention to two subsequent judgments of the Hon'ble Supreme Court being those in Commissioner of Income Tax Vs. Karnataka Power Corporation reported in (2001) 247 ITR-268, and in Bongaigaon Refinery and Petrochemicals Ltd. Vs. Commissioner of Income Tax reported in (2001) 251 ITR-329 2 to contend that in the circumstances like the present one the income of interest would be taxable. We have gone through the above two judgments also, and find that so far Karnataka Power Corporation's case is concerned, a look at that judgment shows that it clearly proceeds on the basis of concession of the parties apart from the fact that this also decides the issue in favour of the assessee on the basis of the earlier judgment of the Hon'ble Supreme Court in CIT Vs. Bokaro Steel Ltd. reported in (1999) 236 ITR-315 and in CIT Vs. Alcock Ashdown and Co. Ltd. reported in (1997) 224 ITR-353 even though the other judgment has no bearing on the controversy, as in that case the controversy was as to whether the assessee was entitled to the benefit 84 of the Income Tax. So far Bongaigaon Refinary and Petrochemicals Ltd.'s case is concerned, this judgment also does not lay down anything on the relevant controversy, inasmuch as in this case the High Court had held, that the interest income derived by the assessee during its formative period was taxable income, and despite it being appeal of the assessee, this finding does not appear to have been assailed. In that view of the matter, this cannot be said to be a judgment of the Hon'ble Supreme Court on the aspect of taxability of interest income derived during formative period. 3 Thus, the fact remains that the matter stands covered by the judgment in M/s. Kansara Modler Ltd.'s case. Accordingly, for the same reasons these appeals are also dismissed. ( KISHAN SWAROOP CHAUDHARI ),J. ( N P GUPTA ),J. /Sushil/