Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 129 - MADHYA PRADESH HIGH COURTInterest accrued on equity funds deployed with the Bank - zero coupon money - nexus of funds invested in FDR - income from other sources OR capital receipt - Held that:- Interest earned by the assessee before commencement of business on short term deposits with banks, even out of term loans secured from financial institutions, is an income chargeable under the head “income from other sources” and would not go to reduce the interest payable by the assessee which would be capitalised after the commencement of commercial production. See Tuticorin Alkali Chemicals & Fertilizers Ltd Versus CIT [1997 (7) TMI 4 - SUPREME Court] & M.P. State Industries Corporation (1968 (4) TMI 2 - MADHYA PRADESH High Court) wherein held that the interest earned by investing the surplus share money in bank deposits, such interest is taxable as income from other sources and not as business income. Also see Shree Krishna Polyster Ltd (2004 (10) TMI 42 - BOMBAY High Court). Not a fit case for filing an SLP before the Apex Court. The prayer made by the appellant is rejected.
|