2007 (11) TMI 651

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..... e interest garned by the appellant on the fixed deposit invested for the purpose of its business has to be treated as business income or income from other sources? 2. appellant-assessee is dealing in silk waste and silk textiles. Certain monies were invested in fixed deposits in order to obtain letter of credit. Interest received from the fixed deposit has been shown by the assessee as his busi .....

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..... ntends that interest received by the assessee on the fixed deposit has to be treated as income from business only. According to him, money was invested in fixed deposit only to get benefit of letter of credit and not to invest money to earn any interest. In other words, he contends that in connection with the assessee s business, fixed deposits were made in the bank. Therefore, any interst accrued .....

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