Interest on deposits cannot be treated as business Income for Section 44AD

Euro Homes Vs DCIT (ITAT Chennai) In so far as interest on deposits is concerned, the assessee has included interest received from deposits amounting to Rs. 55,449/- as business receipts and estimated net profit u/s. 44AD of the Act. The AO has excluded interest receipts from gross receipts and assessed under the head income from other source. It was the argument of the Ld. Counsel for the assessee, that the assessee has parked surplus funds which is not immediately required for the purpose of business in fixed deposits and earned interest and thus, it partakes the nature of business receipts ...