Interest Income of NBFC Company from Bank Deposits is Business Income

Assessing Officer noticed that the assessee claimed set off of brought forward business loss against income of Rs. 24,94,407/- for the year under consideration. On perusal of profit and loss account , it was revealed that the assessee earned interest income amounting to Rs. 91,26,226/- from the deposits in the banks and thus, wrongly claimed set off of brought forward business loss against such interest income . To a query by the AO, seeking to assess interest income from deposits in the banks under the head ’Income from Other Sources’, the assessee replied that the company was registered ...