Allowing the appeal of the revenue the court held that ; interest on fixed deposits earned before commencement of the business on sums borrowed for setting up the business and placed in fixed deposit pending their utilisation in the project, is an “income from other sources”. ( AY. 2011-12, 2012-13)
CIT v. Sangam Power Generation Co. Ltd. (2018) 405 ITR 390 (All) (HC)
S.56:Income from other sources — Business income —Setting up business — Interest on fixed deposits – Assessable as income from other sources [ S.28(i) ]