https://www.taxtmi.com/caselaws?id=757051 ITAT Mumbai upheld CIT(A)'s deletion of addition regarding interest income from fixed deposits. The assessee created FDs as margin for bank loans used in business, establishing nexus between interest earned and business operations. The interest income was properly netted off against interest expenditure capitalized in work-in-progress. AO failed to prove FDs were from surplus funds, especially when assessee borrowed at higher rates than FD earnings. Coordinate bench precedent supported treating such interest as business income, not income from other sources. Appeal decided against revenue. en-us Mon, 12 Aug 2024 00:00:00 +0530 Wed, 14 Aug 2024 08:33:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757051 ITAT Mumbai upheld CIT(A)'s deletion of addition regarding interest income from fixed deposits. The assessee created FDs as margin for bank loans used in business, establishing nexus between interest earned and business operations. The interest income was properly netted off against interest expenditure capitalized in work-in-progress. AO failed to prove FDs were from surplus funds, especially when assessee borrowed at higher rates than FD earnings. Coordinate bench precedent supported treating such interest as business income, not income from other sources. Appeal decided against revenue. Case-Laws Income Tax Mon, 12 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757051