If the funds of the business are parked for safe keeping or with a view to earn interest income de-hors the business activity, the interest resulting there from cannot assume the character of business income but it would fall under the head "income from other sources"

CASE LAWS DETAILS DECIDED BY: ITAT DELHI BENCH `D’, NEW DELHI, IN THE CASE OF: Lovlesh Jain Vs. ACIT, APPEAL NO: ITA No. 4725/Del/2009, DECIDED ON April 30, 2010 RELEVANT PARAGRAPH 14. The moot question that arises for our consideration in the present case is whether, on the facts of the present case, the interest earned by the assessee on fixed deposit is assessable as profit of the business of undertaking for the purpose of computing the deduction available to the undertaking under section 10A of the Act. 15. We shall first address ourselves to decide whether the interest on fix deposi...