Interest on business advances held as fixed deposit is Business Income

ACIT Vs National Film Development Corporation Ltd. (ITAT Mumbai) We are of the opinion that considering the facts that assessee’s business -production of films for Ministries of Government of India and various government departments-and the durations for which the amounts were kept with banks the income earned by it has to held as business income. The FAA had allowed the claim made by the assessee on the grounds that it was in the business of production of films, that the completion of films would take time, that during the intervening period the advances were deposited with bank resulti...