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2019 (5) TMI 1825 - AT - Income TaxFixed deposit interest income - correct head of income - Income from Business & Profession or Income from Other Sources" - CIT(A) directed the AO treat the interest income earned from fixed deposits by the assessee under the head income from business and profession - as per revenue assessee has itself described "interest on film loan" in Profit and Loss account separately which could be categorized as income from Business and Profession - HELD THAT:- CIT(A) has held that in case of the assessee it is not a simple case of making investments in FDRs with a view to earn interest income. The assessee used to receive advances for various jobs and the advances and it is not possible to utilise the advances so received immediately. As the production of films requires formulation, ideas, concept of theme approval from the respective department, the assessee deposits the money received in advance for short duration. CIT(A) further pointed out that the duration of deposit reveals the fact that the FDRs were not deposited for longer period and the same were made as a time gap arrangement - we agree with the Ld. CIT(A) that the interest income earned by the assessee from FDRs cannot be treated as the income from other sources. CIT(A) has passed the order in the present case by following the order of his predecessor passed in assesses own case for the AY 2011-12. No infirmity in the order of the Ld. CIT(A). - Decided against revenue.
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