Dismissing the appeal of the revenue the Court held that interest received on inter-corporate deposits (ICDs) was brought to tax as ‘income from other sources’ .Interest paid on sum borrowed from a sister concern is held to be allowable as deduction. (AY. 2011-12)
PCIT v. Jubilant Energy Nelp-V (P.) Ltd. (2019) 261 Taxman 194/ 178 DTR 365 (Delhi)(HC)
S. 57 : Income from other sources–Interest–Intercorporate deposits (ICDS)-Interest received is held to be taxable as income from other sources–Interest paid to sister concern is held to be allowable as deduction. [S. 56]