Treatment of interest received against FDR in respect to units covered u/s 10AA in SEZ

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..... Treatment of interest received against FDR in respect to units covered u/s 10AA in SEZ
Query (Issue) Started By: - KISHOR DATTANI Dated:- 8-11-2010 Last Reply Date:- 17-11-2010 Income Tax
Got 1 .....

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..... Reply
Income Tax
My querry is assessee is manufacturer and exporter of jewellery and unit is situated in SEZ covered U/S 10AA. For obtaining various facilities from bank such as advance Gold lo .....

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..... an against export order assessee have to make FDR as margin money against LC.Said FDR is directly related with gold procurment from Bank itself and have direct nexus with business carried on. ITO want .....

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..... s to treat such interest received against FDR as Income from Other source and not Profit from industrial unit. Kindly through some light and legal decisions directly related. CA KISHOR DATTANI Reply .....

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..... By Surender Gupta: The Reply: It is question of fact to determine the nature of investment. In your case, as I understand the query, your have created FD under compulsion as margin money against LC. .....

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..... This FD can not be held as FD of surplus funds. Any activity which is done for the purpose of business, has to be held as business income and not as income from other sources. In other words it is nex .....

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..... us between interest on FDR and business would determine the head under which it would fall.
Discussion Forum - Knowledge Sharing .....

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