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Acg Associated Capsules P.Ltd vs C.I.T Central-Iv Mumbai on 8 February, 2012

These FDRs were purchased for commercial purposes i.e. for obtaining bank guarantee etc. and the loan against FDRs was used for construction business. Thus clearly the interest on FDRs was business income against which interest paid, if any, has to be allowed in the absence of any business receipts during the year. He again relied on the decision of ACG Associated Capsules Pvt Ltd. Vs. CIT (supra) and CIT Vs. Shri Ram Honda Power Equip, 289 ITR 475 (Delhi).
Supreme Court of India Cites 14 - Cited by 297 - A K Patnaik - Full Document
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