https://www.taxtmi.com/caselaws?id=335102 Project income of an association of persons, when computed on commercial principles, is not diverted at source merely because the eventual revenue share is allocated to one member under the association agreement; the allocation remains a share of profit and is excluded from diversion treatment. Interest on fixed deposits created from corpus amounts collected for a proposed society is not taxable in the developer's hands where the funds are held in a fiduciary capacity and not for its own benefit, although factual verification of transfer to the society may still be required. The article notes that the business-income issue was resolved in favour of the assessee, while the interest issue was remitted for verification. en-us Wed, 21 Sep 2016 00:00:00 +0530 Fri, 25 Nov 2016 18:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335102 Project income of an association of persons, when computed on commercial principles, is not diverted at source merely because the eventual revenue share is allocated to one member under the association agreement; the allocation remains a share of profit and is excluded from diversion treatment. Interest on fixed deposits created from corpus amounts collected for a proposed society is not taxable in the developer's hands where the funds are held in a fiduciary capacity and not for its own benefit, although factual verification of transfer to the society may still be required. The article notes that the business-income issue was resolved in favour of the assessee, while the interest issue was remitted for verification. Case-Laws Income Tax Wed, 21 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335102