Interest income on Inter Corporate Deposits (ICD) and Fixed ...

Interest on ICDs & FDs rightly treated as business income for leasing & financing firm despite no NBFC registration. Rule of consistency upheld.

Case Laws Income Tax

July 31, 2024

Interest income on Inter Corporate Deposits (ICD) and Fixed Deposits (FD) treated as income under "Profits & Gains of Business or Profession" instead of "Income from Other Sources" upheld. Assessee engaged in leasing and financing business as per Memorandum of Association (MOA). Non-registration as Non-Banking Finance Company (NBFC) not a valid reason for changing head of income. Rule of consistency demands consistent treatment when accepted as business income in preceding and succeeding years. Disallowance of amortized preliminary expenses set aside, directed to allow amortization consistent with treatment in other years. Appeal partly allowed.

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Interest income on Inter Corporate Deposits (ICD) and Fixed ...

Interest on ICDs & FDs rightly treated as business income for leasing & financing firm despite no NBFC registration. Rule of consistency upheld.

Case Laws Income Tax

July 31, 2024

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