Interest from FD linked to business activities is business income: ITAT Mumbai

ITO Vs Andhra Pradesh Expressway Limited (ITAT Mumbai) In a pivotal ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai addressed a critical issue concerning the classification of interest income derived from fixed deposits (FD) linked to business activities. The case of ITO Vs Andhra Pradesh Expressway Limited delves into whether such interest income should be categorized under “Business Income” or “Income from Other Sources.” This decision provides clarity on how income from FDs, tied to business operations, should be treated for tax purposes. Background of the Case The controver...