Interest from surplus fund taxable as income from other sources

Brief of the Case ITAT Chandigarh held in the case M/s Himlayan Expressway Limited vs. ITO that it is clear that the borrowed funds were not required by the assessee for business purposes. Therefore, the same funds were surplus funds in nature for that period which was utilized for making term deposits on which the assessee earned the interest. The surplus funds, therefore, deployed in short term deposits could not be inextricably linked with the road construction project. Further in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs. CIT [1997] 227 ITR 172, the apex court held t...