2018 (9) TMI 1648 - HC - Income Tax

Appeal admitted for the following question (d) Whether on the facts and in circumstances of the case, the learned ITAT has erred in law and on facts in considering the interest earned on inter-corporate deposits by the assessee to the tune of ₹ 474.62 lacs under the head Profit and Gains of business instead of Income from other sources without appreciating that assessee is not regularly carrying on business of financing or lending of money as a systematic activity?

Summary

The Gujarat High Court, in the case of Mr. M.R. Shah and Mr. A.Y. Kogje, JJ., considered whether interest earned on inter-corporate deposits should be classified under 'Profit and Gains of business' or 'Income from other sources'. The court disposed of the matter by adding a question regarding the classification of the interest earned.