Interest on Bank FDRs to maintain the Minimum Interest Reserve Account is taxable as Business-Income

Brief Facts of the case

• The assessee company engaged in business as builders and the developer. During the relevant period in the assessment year, it earned interest to the extent of Rs. 77,25,153/- on FDRs which was not offered for taxation; instead it was set-off with projects in progress.
• Holding that interest income was unrelated to the business activity of the assesse the A.O. treated this income to be income from other sources.
• On appeal, the CIT (A) accepted the contention of the

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