Held that the assessee had started acquiring lands in 2007 itself and, thus, it could be said that business of assessee had already been set up. Expenses incurred for running of business allowable as deduction, though no income was earned during the relevant year. Held that the assessee, had failed to demonstrate business compulsion for making deposits with banks, interest income on bank deposits be assessed under head Income from other sources and not as business income. (AY. 2012-13, 2014-15)
Bengal Shriram Hitech City (P.) Ltd. v. ACIT (2021) 191 ITD 466 / 86 ITR 719 (Bang.)(Trib.)
S. 37(1) : Business expenditure-Business of real estate developer-Setting up of business-Acquired land in the year 2007-No business income-Expenses allowable as deduction-Interest earned from bank deposits-Assessable as income from other sources and not as business income. [S. 28(i), 56]