1. The question that was before the High Court: "Whether, on the facts and in the circumstances of the case, the interest income is not assessable to tax in the hands of the appellant?"
2. The High Court answered the question against the Revenue. The Revenue is in appeal by special leave.
3. It is not now in dispute that the appeal must succeed, having regard to the judgment of this Court in Tuticorin Alkali Chemicals and Fertilisers Ltd. v. CIT (1997) 227 ITR 172.
4. The civil appeal is accordingly allowed. The judgment and order under challenge is set aside. The question is answered in the negative and in favour of the Revenue. In other words, the interest income is assessable to tax in the hands of the assessee.
5. No order as to costs. .