During the period of pre production of a manufacturing company where commencement of business does not take place, the excess funds procured (thru equity) are deposited as FD, and interest income is earned.
Should that interest income be treated as Income from other sources (sec.56) or as Income from Business(sec.28) ?
Pls give me the case law if any, if it that could be treated as Income from Business.
12 December 2009
To be included and assessed under the head'income from other sources'. Citation:- 1) Traco Cable company Ltd Vs. CIT (1969)72 ITR 503(Ker). 2) CIT Vs. Modi Rubber Ltd (1994)208 ITR 379 (Delhi).
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