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2014 (1) TMI 1541 - HC - Income TaxNature of deposit receipts - Capital or revenue - Held that:- The assessee has shown 20% deposits as revenue receipt, but later, it was claimed as capital receipt - Relying upon decision in CIT vs. Sahara Investment India Ltd [2003 (11) TMI 57 - ALLAHABAD High Court] - When a person deposits some money in a bank that amount does not become the income of the bank but rather it becomes the capital of the bank in the form of borrowed capital - Income is ordinarily that which flows out of capital - The assessee has collected the funds from the public/depositors, who have deposited the money to earn interest - This amount is capital which will be utilized to earn income - The money deposited is nothing but the capital in nature - Decided against Revenue.
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