The Tax Publishers2020 TaxPub(DT) 4196 (Del-HC)

INCOME TAX ACT 1961

Section 14

Following the judgment in NTPC SAIL Power Co. (P) Ltd. v. CIT (2012) 25 taxmann.com 401 (Del) : (2012) 210 Taxmann 358 (Del.) : 2012 TaxPub(DT) 3140 (Del-HC), interest income earned by assessee towards the surplus funds lying with it would be taxed as business income and not as income from other sources.

Head of income - Business income or Income from other sources - Interest income earned on surplus fund -

Revenue sought to tax the interest income earned by the assessee towards the surplus funds lying with it under income from other sources, whereas assessee held it to be business income. Held: The judgment in NTPC SAIL Power Co. (P) Ltd. v. CIT (2012) 25 taxmann.com 401 (Del) : (2012) 210 Taxmann 358 (Del.) : 2012 TaxPub(DT) 3140 (Del-HC) is conclusive and averse to the Revenue. Following the same, issue was decided against the revenue.

Followed:NTPC SAIL Power Co. (P) Ltd. v. CIT (2012) 25 taxmann.com 401 (Del) : (2012) 210 Taxmann 358 (Del.) : 2012 TaxPub(DT) 3140 (Del-HC).

REFERRED :

FAVOUR : In favour of assessee

A.Y. :

INCOME TAX ACT 1961

Section 37(1)

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