Interest on Bank Deposit earned by Assessee Engaged in Money Lending is Business Income

Muthoot Bankers Vs. ACIT (ITAT Cochin) The issue under consideration is whether the interest on bank deposit earned by assessee engaged in money lending covered under head of Business Income or Income from Other Sources? ITAT states that, the assessee is engaged in the business of money lending and investments. The ‘money’ is the stock in trade of the assessee and any income earned by the assessee by rotating that money, i.e. stock in trade is nothing but income from business only and it cannot be considered as income from other sources. Being so, ITAT decide this issue in favour of the as...