Interest earned on Escrow Account shall be treated as income from business not from other sources.

Issue before Tribunal: Whether interest income earned on amount in Escrow Account can be treated as Income from other sources instead of income from business. Brief facts: Assessee filed the return of income on 29.09.2008 declaring nil income which was processed u/s 143(1). During the course of assessment proceedings, the AO noticed that the assessee earned interest income of Rs. 32,36,296/- which included interest on the amount deposited in Escrow Account amounting to Rs. 13,42,311/-. The said amount was considered by the AO as “income from other sources” instead of “income from busine...