https://www.taxtmi.com/caselaws?id=5335 SC held that interest earned on fixed deposits made by the liquidator from sale proceeds of the company's assets during winding up was assessable under "Income from other sources" and not as business income under section 28 of the Income-tax Act. The liquidator's activity of realising and depositing assets was part of winding-up, not continuation of business. Expenses incurred by the liquidator were not deductible under section 57(iii), as there was no nexus between such expenditure and the earning, protection, or maintenance of the interest income source; the interest accrued automatically from the bank deposits. Appeals were dismissed, affirming the Tribunal's denial of the claimed deductions. en-us Tue, 06 Aug 1991 00:00:00 +0530 Thu, 28 May 2026 10:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5335 SC held that interest earned on fixed deposits made by the liquidator from sale proceeds of the company's assets during winding up was assessable under "Income from other sources" and not as business income under section 28 of the Income-tax Act. The liquidator's activity of realising and depositing assets was part of winding-up, not continuation of business. Expenses incurred by the liquidator were not deductible under section 57(iii), as there was no nexus between such expenditure and the earning, protection, or maintenance of the interest income source; the interest accrued automatically from the bank deposits. Appeals were dismissed, affirming the Tribunal's denial of the claimed deductions. Case-Laws Income Tax Tue, 06 Aug 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5335