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Interest on FDs for pre-operative period is taxable as Income from Other Sources
Case Law Details
- Case Name
- DRS Warehousing (South) Vs Income Tax Officer (ITAT Hyderabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Hyderabad
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Assessee, even though has borrowed funds has not utilized them for the purpose of project and has kept them in short term FDs with another bank, not in the bank from which it has obtained loan. This indicates that the funds are not utilized for the purpose of business in the project construction. Therefore, on facts alone, the set-off cannot be given. The issue of interest earned on FDs of surplus funds are considered by the Honorable Supreme Court in a series of judgements. The first of which is the decision of Honorable Supreme Court in the case of Tuticorin Alkali Chemicals...
