Supreme Court of India

Commissioner of Income Tax, Bihar-ii, Patna. v. Bokaro Steel Ltd. Bokaro

Neutral citation
Reported as [1998] SUPP. 3 S.C.R. 680
Bench Sujata V. Manohar and G.B. Pattanaik JJ.
Decided 18 December 1998

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

From the headnote

Income Tax Act, 1961-Assessee-Bokaro Steel Limited-During construction of factory and before commencement of business sums received by it as : (a) rent for housing workers and staff employed by contractors; (b) hire charges for plant and machinery given to the contractors for use in construction work of assessee; (c) interest from advances made to the contractors by assessee for purpose of facilitating work of construction­ Held, these are receipts of capital nature and cannot be taxed as income­ These receipts being inextricably linked with the setting up of the capital structure of the

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