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2015 (11) TMI 628 - AT - Income TaxInterest income earned by the assessee - whether is an income chargeable under the head "Income from other sources"? - Held that:- Interest income earned through short-term deposits by investing the borrowed capital as income not connected with the construction and business activity of the assessee. The very same issue has also been considered by the hon'ble Supreme Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997 (7) TMI 4 - SUPREME Court] and held that the interest earned by the assessee before the commencement of business on short- term deposits with the bank's out of term loans secured from financial institutions is income chargeable under the head "Income from other sources" and would not go to reduce the interest payable by the assessee which would be capitalised after the commencement of commercial production. In the present case, the assessee has failed to substantiate that the assessee has already commenced its business operations. Therefore we are of the opinion that the interest income earned by the assessee is an income chargeable under the head "Income from other sources". - Decided against assessee.
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