Interest from short term deposit not eligible for business income relief under Income-tax Act, 1961.

The Court upheld the Tribunal's decision to treat the interest amount received on short term deposit as income from 'Other sources' rather than as income from business for the purpose of section 80HHC relief under the Income-tax Act, 1961. The appeal by M/s. Southern Cashew Exporters against the Income-tax Appellate Tribunal's order for the assessment year 1994-95 was dismissed, with the Court finding no merit in the appeal based on previous judgments against the assessee.

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Issues Involved:
The assessment of interest amount received on short term deposit as income from business for the purpose of relief under section 80HHC of the Income-tax Act, 1961.

Judgment Details:

The appeal was filed by M/s. Southern Cashew Exporters against a common order of the Income-tax Appellate Tribunal for the assessment years 1994-95 and 1995-96, specifically focusing on the assessment year 1994-95. The questions raised by the assessee pertained to the treatment of interest amount received on short term deposit as income from business under section 80HHC of the Income-tax Act. The Assessing Officer categorized the amount under 'Other sources', but the first appellate authority considered it for section 80HHC relief. However, the Tribunal overturned the first appellate authority's decision and upheld the Assessing Officer's view, leading to the appeal by the assessee. The Court noted that the questions raised were similar to previous judgments against the assessee and in favor of the department, thus finding no merit in the appeal and dismissing it.

In conclusion, the Court upheld the Tribunal's decision to treat the interest amount received on short term deposit as income from 'Other sources' rather than as income from business for the purpose of section 80HHC relief under the Income-tax Act, 1961.

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