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2015 (1) TMI 95 - ITAT MUMBAIClassification of income - Business income or Income from other sources - Held that:- Admittedly, it is not the case of the Revenue that the assessee had invested his surplus money in FDR with the bank for earning of interest income. The bid amount was deposited by the assessee for acquisition of business of M/s. Riverdale Foods Ltd. i.e. for business purposes only. Even the FDR was made with Bank of India in the account of M/s. Riverdale Foods Ltd. Hence, under such circumstances it cannot be said that the assessee had invested the money for the purpose of earning of interest income. The FDR was deposited as a prerequisite to be eligible for making bid to acquire business of the sick company, and as such the deposit was made for business purposes only. Under such circumstances, we do not find any infirmity in the order of the Ld. CIT(A) in directing the AO to treat the said interest income received on the bid amount as business income of the assessee - Decided against Revenue.
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