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2016 (2) TMI 795 - AT - Income TaxTreatment of income from deposits - income from business OR income from other sources - Held that:- In this case, interest was in the nature of additional source of income to the assessee, which was not in any way linked to the business that the assessee was carrying on. The interest income that has been received by the assessee on its own fund kept in deposit with the bank did not have any direct link or nexus with the business that was being carried on. The deposit made with the bank was for the convenience and benefit of the assessee with a view to derive interest income. Thus, the true character of the income is not "business income" but "income from other sources" only. It is possible to have different sources of income each one of which will be chargeable to income-tax and the assessee can keep the surplus funds which are not immediately required for the purpose of business in deposits in order to earn interest and such interest will be chargeable under section 56. - Decided against assessee
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