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Interest from surplus fund taxable as income from other sources
Case Law Details
- Case Name
- M/s Himlayan Expressway Limited Vs ITO (ITAT Chandigarh)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2009-10
- Courts
- All ITAT, ITAT Chandigarh
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Brief of the Case
ITAT Chandigarh held in the case M/s Himlayan Expressway Limited vs. ITO that it is clear that the borrowed funds were not required by the assessee for business purposes. Therefore, the same funds were surplus funds in nature for that period which was utilized for making term deposits on which the assessee earned the interest. The surplus funds, therefore, deployed in short term deposits could not be inextricably linked with the road construction project. Further in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs. CIT [1997] 227 ITR 172, the apex court held t...
