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2015 (2) TMI 1283 - ITAT CHANDIGARHInterest income - treated as ‘income from other sources’ or 'busniss income' - Held that:- The assessee was engaged in the business of development and construction of properties. The assessee firm had received advances from customers and money received through such advances which were not required immediately was deposited in FDRs etc. on temporary basis. The interest credited on such deposits was deducted from the work in progress. Assessing Officer taxed such interest as ‘income from other sources’. Referring to decision of Hon'ble Supreme Court in the case of CIT v Bokaro Steel Ltd.(1998 (12) TMI 4 - SUPREME COURT) and held that interest income is to be assessed as business income because the assessee had already commenced business. In this background the interest income was held to be not taxable. In our opinion, the facts of the assessee’s case are identical to this case and, therefore, following this decision, we hold that interest income cannot be treated as ‘income from other sources’ as since he same has been reduced from the work in progress, the same is not taxable. Therefore, we set aside the order of Ld. CIT(A) and delete the addition. - decided in favour of assessee.
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