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Sec. 10B Interest on FDRs on margin kept in bank for utilization of letter of credit limits is business Income
Case Law Details
- Case Name
- Principal CIT Vs Universal Precision Screws (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Brief of the Case
Delhi High Court held In the case of Principal CIT vs. Universal Precision Screws that interest on fixed deposits has the requisite characteristic of business income and has a nexus to the business activities of the Assessee. Accordingly it will be part of the profit of business while computing profit derived from the export activities. In the present case, the Assessee has stated that the interest on FDRs was received on ‘margin kept in the bank for utilization of letter of credit and bank guarantee limits’. In those circumstances, the decision of the ITAT that s...
