ITAT Remand Case to AO to Decide Treatment of Interest from FDR made for Contract Business

Manjit Singh Malhi Vs ACIT (ITAT Kolkata) The issue under consideration is whether CIT(A) is correct in treating the interest from Fixed deposits made in connection with Contract business as income from ‘Other sources’ in place of income from ‘Business’? ITAT states that the FDR was used as security for obtaining the contract and was essential condition for bagging the contract, however, the assessee has not bothered to give any material/evidence to show that the interest accrued on the FDRs/deposit was incidental and that the main purpose of FDR’s was it was a condition for getting ...