Held that when the business itself was not allowed to be carried on to the assessee, the investment made in mutual funds could not be treated as giving rise to business income. Ex consequential  the profit or loss from transfer of such mutual funds would fall under the head Capital gains. The interest on fixed deposits with nationalised banks shall be taxed as Income from other sources. The Tribunal  also held that  the assessee was entitled to set off the loss from mutual funds, etc. against the income from mutual funds, etc. However, this exercise required examination of the amount of loss incurred from sale of mutual funds, etc. during the year and the amount of loss brought forward from earlier years eligible for set off against income from mutual funds during the year. Such an exercise can be carried out only after considering the break-up of the loss. The  matter remanded to the Assessing Officer  to examine   brought forwarded from earlier years and then allow set-off in terms of sections 70 and 71 of the Act. (AY. 2007-08, 2008-09)