Interest earned on deposit of surplus funds – Business Income?

Hindustan Unilever Ltd. Vs ACIT (ITAT Mumbai) We find that the DRP had specifically directed the assessee to file justification for treating the interest income as business income, that it had not filed any explanation in that regard. Interest income can be taxed under both the heads i.e. business income or income from other sources depending upon the facts of the case.So,no hard and fast rule can be made in that regard. In the matter under consideration,the DRP has given a finding of fact that assessee was not in the business of money lending,that the surplus funds available with it were kept...