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2014 (6) TMI 1031 - AT - Income TaxTrading addition - applying net profit rate @ 6.5% subject to allowability of depreciation, interest and remuneration to partners - HELD THAT:- In this case, the past history of the assessee is available and in the immediately past A.Y., net profit rate of 5.85% has been accepted. Therefore, in continuity of consistent view taken by us, we direct that 5.85% in place of 6.5% adopted by the ld. CIT(A) has to be considered and whatever trading addition remains to be added can be added. With this observation, we partly allow ground raised in cross objection and dismiss the ground raised in appeal by the revenue. Characterization of income - Treating the interest from FDRs as income from other sources or business income - HELD THAT:- Facts of the case are that by the assessee the FDRs were raised on the compulsion of taking contract from Government department on which interest accrued to the assessee. This is also a settled position of law that in such civil contract cases, when necessarily the FDRs have to be purchased and have to be kept as security for obtaining contracts, such interest received is treated as business income
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