Interest on bank deposit of equity funds at pre-commencement stage taxable as Other Source Income

Hll Biotech Ltd. Vs ITO (ITAT Cochin) Conclusion: Since assessee-company was still at the pre-commencement stage and during this phase, it had raised equity funds which was invested in fixed deposits of the Banks as well as the holding company and had earned interest on the same, the interest earned had to be taxed as ‘income from other sources” and the same could not be set-off against capital expenditure.. Held: Assessee-company, subsidiary of M/s. H Limited,  was set up by the Government for the purpose of developing Integrated Vaccine Complex. Assessee had not commenced commercial...