Addition on account of income arising out of waiver of interest by Banks as income from other sources

Computing provisions of one head of income can be used for the purpose of computing income under that head only and cannot be used for computing income under another head. Therefore, remission of particular income u/s 41 can be taxed only under the head “business income” and this provision can not be read for computing the income under the head “income from other sources and we are of the opinion that remission of interest by the bank can not be charged to tax as income from other sources. Therefore, we do not find any force in the submissions

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