Interest from surplus fund investment is taxable under ‘Income from other sources’

DCIT Vs Cairn Energy Hydrocarbon Ltd (ITAT Delhi) ITAT Delhi held that investment done from the surplus funds in FDs has nothing to do with the business connection. Accordingly, interest received from the same is to be treated under separate head i.e. Income from other sources and not as business income. Facts- The issue is that the assessee deposited their surplus funds in the bank on which an interest amounting to Rs.36,19,348/- was earned and the same offered to tax under the head ‘income from business and profession’. AO erred in treated the interest earned from fixed deposits under th...