https://www.taxtmi.com/caselaws?id=752436 Interest on surplus or idle funds placed in scheduled bank deposits, where not directly attributable to providing credit facilities to members, is taxable as income from other sources rather than qualifying for deduction under section 80P(2)(a)(i) or section 80P(2)(d). A statutory reserve-fund rule does not alter that character without material establishing that the funds were required or permitted to be deployed for the claimed business purpose. Where such interest is assessed as income from other sources, expenditure incurred wholly and exclusively to earn it must be examined under section 57(iii). The cost of funds and related administrative expenditure require factual verification, particularly where own funds exceed the deposits. en-us Tue, 07 May 2024 00:00:00 +0530 Thu, 09 May 2024 18:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752436 Interest on surplus or idle funds placed in scheduled bank deposits, where not directly attributable to providing credit facilities to members, is taxable as income from other sources rather than qualifying for deduction under section 80P(2)(a)(i) or section 80P(2)(d). A statutory reserve-fund rule does not alter that character without material establishing that the funds were required or permitted to be deployed for the claimed business purpose. Where such interest is assessed as income from other sources, expenditure incurred wholly and exclusively to earn it must be examined under section 57(iii). The cost of funds and related administrative expenditure require factual verification, particularly where own funds exceed the deposits. Case-Laws Income Tax Tue, 07 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752436