INCOME TAX ACT, 1961

Section 14

Head of income - Business income or Capital gains - Interest income on FDRs pleaded as intrinsically connected with business of assessee. -

Assessee-contractor declared interest income on FDRs as business income. AO taxed the same as income from other sources. Assessee's case was that interest on FDRs was received by placing FDRs as security amount for purposes of obtaining contracts and tenders as deposit of FDRs/other securities was pre-requisite condition of bank for issuance of performance guarantees. Held: Matter was remanded as if it was found on examination that the interest income was intrinsically related to business of assessee, the same would be considered as business income.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2012-13 & 2014-15

INCOME TAX ACT, 1961

Section 143(3)

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