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2018 (12) TMI 1150 - HC - Income TaxInterest income earned from the fixed deposits for opening the letter of credits and for retention of margin money - income from other sources OR profits and gains of business - Held that:- The deposits made are in pursuance of the contract and but for the contract, there was no warrant for making the deposits or earning income by way of interest. As we already stated, the deposit and the income generated by way of interest, are intrinsically connected with the contract, the business engaged in by the assessee. It can only be income derived from profits and gains of the business. We hence answer the first question in favour of the assessee and against the Revenue. Whether assessee is entitled to set off the un-absorbed depreciation against the income from other sources ? - Held that:- The second question requires no answer at our hands for it being a settled position that there could be no depreciation claimed as against income from other sources. This will have no effect in the case of the assessee insofar as the first question being answered in their favour.
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