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2013 (2) TMI 746 - AT - Income TaxDeduction of interest paid to third party - Whether the income from bank interest on FDRs is to be treated as business income or other sources income - Held that:- interest paid to third party has been allowed as deduction after application of rate of profit thus ITO committed no mistake in allowing the interest - Decided in favor of assessee Held that:- there is a direct nexus between the interest income as well as the investment - The AO has investigated this issue and has found with reference to Tribunal order and High Court decisions that the interest amount received by the assessee is to be treated as business income on which net profit rate of 8.07% as applied to business income has to be applied to arrive at a taxable income - Hence there is no error in the assessment order and is not prejudicial to the interest of the revenue - Decided in favor of assessee
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