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2017 (9) TMI 824 - HC - Income TaxInterest income - income earned on FDRs made out of the underutilized fund borrowed for the setting up of the business - should be reduced from the cost of the project instead of taxing it as an income from other sources? - Held that:- Identical questions in relation to another company M/s Sangam Power Generation Company which is also a 100 percent subsidiary company of M/s Jaiprakash Power Ventures Limited have been considered and decided by this Court [2017 (9) TMI 737 - ALLAHABAD HIGH COURT] to held Interest on Fixed Deposit Receipt has no immediate nexus with the business of Assessee company. Business is yet to commence. So long as Assessee had no business income, the interest earned can not be treated as business income. Thus in our view, it has to be treated as "income from other sources". - Decided in favour of Revenue.
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