Assessee\u00a0 traded crude palm oil (CPO) and opened Foreign Letters of Credit (FLCs) for oil import, pledging Fixed Deposit Receipts (FDRs) as margin with bank.\u00a0 Interest earned on these FDRs was treated as business income. Assessing Officer assessed the\u00a0 interest income as income from other sources.\u00a0 On appeal the CIT(A)\u00a0 held that\u00a0 high sea sale of imported goods as\u00a0 speculative\u00a0 transaction\u00a0 and assessed as\u00a0 business income. On appeal the Tribunal held that entire transaction was going through by proper delivery of goods during purchase and documents were provided for evidence of delivery of goods related to high sea sale, Commissioner (Appeals) rightly treated interest earned on these FDRs as business income.\u00a0 As regards the appeal of the assessee is dismissed as withdrawn. (AY. 2013-14, 2016-17)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 28(i) : Business income-Interest on FDRs-Pledging fixed deposit receipts (FDRs) as margin with bank-Trading in crude palm oil (CPO)-Foreign Letters of Credit (FLCs) for oil import-Interest is assessable as business income and not as income from other sources-High sea sale-whether speculative-Not decided. [S.43(5), 56] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-43880","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bpK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=43880"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43880\/revisions"}],"predecessor-version":[{"id":43881,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/43880\/revisions\/43881"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=43880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=43880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=43880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}