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2005 (9) TMI 47 - HC - Income Tax"Whether the findings of the Income-tax Appellate Tribunal that the interest income received by the assessee is in the nature of business income and deduction under sections 80HH and 80-I are available to the assessee is justifiable in law?" - funds were kept by the assessee in the various companies for short-terms for payment for imported machinery - From the facts and circumstances of the present case it is clear that the inter-corporate deposits were made by the assessee from the surplus funds that were set apart for the payment of imported machinery. That the said deposits were withdrawn and payment was made towards import of the machinery is also not questioned by the Revenue. The interest earned on the short-term deposits of the money kept apart for the purpose of business has to be treated as income earned on business and cannot be treated as income from other sources - question is answered in favour of the assessee and against the Revenue
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