https://www.taxtmi.com/caselaws?id=193035 Interest earned on Government securities purchased from a bank's liquid assets to satisfy a statutory liquidity requirement was treated as assessable interest on securities, not as banking business profits. The framework under the Income-tax Act, 1922 distinguished income from securities from business income, and the investment was found to be only a temporary parking of liquid funds rather than an integral part of banking operations. Authorities relied on for a different result were distinguished because, in those cases, the investments were inseparable from the business activity. The assessment in favour of Revenue was therefore upheld. en-us Thu, 17 Jan 1929 00:00:00 +0530 Mon, 10 Jul 2017 14:33:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193035 Interest earned on Government securities purchased from a bank's liquid assets to satisfy a statutory liquidity requirement was treated as assessable interest on securities, not as banking business profits. The framework under the Income-tax Act, 1922 distinguished income from securities from business income, and the investment was found to be only a temporary parking of liquid funds rather than an integral part of banking operations. Authorities relied on for a different result were distinguished because, in those cases, the investments were inseparable from the business activity. The assessment in favour of Revenue was therefore upheld. Case-Laws Income Tax Thu, 17 Jan 1929 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193035