Deepak Pandurang Gadre, Ratnagiri vs Assessee on 15 November, 2006
Similarly, in the case of J P Morgan Services India (P) Ltd. (supra) interest
on fixed deposits taken out by depositing business proceeds, was
considered as part of the profits and gains of the business of the
assessee, following the judgment of the Hon'ble jurisdictional High Court
in the case of CIT v Lok Holdings (supra). The Tribunal also held that such
interest income was eligible for claim of deduction under section 10A of
the Act. Following the aforesaid precedents, the impugned interest income
from short term deposit with bank is assessable as business income,
having regard to the facts and circumstances of the present case.