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2019 (8) TMI 843 - ITAT MUMBAITaxability of interest income from short term fixed deposits - interest earned on short term fixed deposits is necessarily should be reduced from work in progress OR taxable under the head income from other sources - HELD THAT:- We find that the assessee has earned interest income from short term fixed deposits kept in bank out of unutilized funds available in respect of money borrowed for the purpose of execution of project and the same has been reduced from working progress. We, further noted that an identical issue has been considered by the Co-ordinate Bench in the case of Hazaribag Ranchi Expressway Ltd Vs. ITO [2018 (11) TMI 1660 - ITAT MUMBAI] , where under identical set of facts and also after considering various judicial precedents, including the decision of Hon’ble Supreme Court in the case of Tuticorin Alkali Chemicals & fertilizer Ltd. vs CIT [1997 (7) TMI 4 - SUPREME COURT] held that interest income from short term fixed deposits kept in bank out of funds borrowed for the purpose of project is assessable under the head income from business, consequently during construction period of project, it needs to be reduced from working progress. - appeal filed by the assessee is allowed
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