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TMI Blog2013 (4) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as chargeable to tax under the head "income from other sources". 2. The assessee in the present case is a partnership firm which carries on the business as builder and developer. The return of income for the year under consideration was filed by it on 29-9-2008 declaring total income of ₹ 58,93,845/. During the course of assessment proceedings, it was noticed by the A.O. that the assessee has received interest on fixed deposits with bank amounting to ₹ 12,19,969/- and interest from private parties amounting to ₹ 4,16,369/-. The said interest received during the year under consideration as well as interest paid for the loans taken for Kharghar project was not reflected by the assessee in the P&L account but the same w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tikorin Chemicals. Though the Ld. AR of the Appellant has tried to distinguish the facts of this case from the facts of the aforesaid case relied upon the AC, but I am not convinced with the grounds on which the Ld. AR has tried to distinguish his case from the case decided by the Apex Court. As regards the argument of the Appellant, that it has three different projects as against the only one line of operation i.e. manufacturing in the case before Supreme Court, it is noted that the assessee's business is also of only one activity i.e. construction, in a the three projects. Similarly, the other plea of the Appellant that it has shown profit from one project as against no profit declared in the case of Tutikorin, it is observed that this pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned by the assessee on the temporary deposits made out of surplus funds was held to be business income by the Hon'ble jurisdictional High Court which could not be assessed as "income from other sources". Since the facts involved in the present case are almost similar to the case of Lok Holdings (supra), we respectfully follow the decision of the Hon'ble jurisdictional High Court rendered in the said case and hold that the interest income in question received by the assessee is chargeable to tax under the head "profits and gains of business or profession" for the year under consideration and not under the head "income from other sources" as held by the authorities below. 5. As regards the other issue involved in this appeal relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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