Business income classification for bank interest and fixed deposits clarified after rectification of a typographical error.

A typographical error in an earlier ITAT order was rectified where the expression "interest on saving bank account" had been recorded instead of "bank interest". The corrected finding clarified that the assessee's interest income from savings bank account and fixed deposits arose from business activities and was assessable under the head "profits and gains of business or profession".

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Issues: Whether the typographical error in the earlier order required rectification and whether the corrected finding should state that interest on saving bank account and fixed deposits is assessable as business income.

Analysis: The earlier order had inadvertently recorded the expression "interest on saving bank account" instead of "bank interest". The Tribunal found that the error was purely typographical and that the intended finding was that the assessee's interest income arose from its business activities. The corrected formulation clarified the head under which such income was to be assessed.

Conclusion: The typographical mistake was rectified, and the finding was corrected to state that interest on saving bank account and fixed deposit should be taxed under the head profits and gains of business or profession.

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