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2013 (6) TMI 598 - AT - Income TaxInterest receipt - whether it is a business receipt or income from other sources - Held that:- As decided in CIT V/s. Sponge Iron India Ltd. [1992 (10) TMI 67 - ANDHRA PRADESH High Court] that since the business had not commenced, the interest income could not be treated as business income & CIT V/s. Rassi Cement Ltd.(1998 (4) TMI 132 - ANDHRA PRADESH High Court) the interest earned on surplus funds deposited in banks during the installation of a company prior to the commencement of the business is assessable as income from other sources. Thus in the light of the foregoing discussion interest income is assessable as income under the head 'other sources' as during the year under consideration was the pre-commencement period of the assessee. Against assessee.
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