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2011 (7) TMI 358 - HC - Income TaxWhether the interest receipts from Short Term Deposits with bank for opening Letter of Credit has to be assessed as income from other sources - Held that:- it is clear that the interest income earned on the Fixed deposits, treated as income from other sources, hence, needs to be considered in the calculation to be done in accordance with Clause (baa) of the Explanation to Section 80HHC of the Income Tax Act, 1961. In so holding, there is no hesitation in confirming the order of the Tribunal. Thus, the tax case appeals relating to the assessment years 1997-1998, 1998-1999 and 1999-2000, stand dismissed in so far as the two questions are concerned. As regards the assessment year 1999-2000, in respect of the assessee as to whether the interest earned from the advances should be assessed under the head of "income from other sources", the Tribunal gave a finding that the interest income was earned on advances given out of surplus funds which was not in the ordinary course of business. Going by the said finding, in the absence of any other material to substantiate that the assesseee was not doing money lending business also, we have no hesitation in confirming the view of the Tribunal.
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