https://www.taxtmi.com/caselaws?id=39356 Interest earned by the official liquidator on short-term fixed deposits created from realised assets pending distribution in winding up was held not to be business income. The High Court reasoned that, once the company was compulsorily wound up, its banking business had ended and the liquidator's role was limited to realising assets and distributing proceeds. Temporary parking of surplus funds in fixed deposits did not amount to carrying on the company's business, and section 28(4) of the Income-tax Act did not apply because the liquidator was not conducting business activity. The interest was therefore taxable as income from other sources, and the Revenue's position succeeded. en-us Fri, 29 Aug 1975 00:00:00 +0530 Fri, 16 Apr 2010 10:03:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39356 Interest earned by the official liquidator on short-term fixed deposits created from realised assets pending distribution in winding up was held not to be business income. The High Court reasoned that, once the company was compulsorily wound up, its banking business had ended and the liquidator's role was limited to realising assets and distributing proceeds. Temporary parking of surplus funds in fixed deposits did not amount to carrying on the company's business, and section 28(4) of the Income-tax Act did not apply because the liquidator was not conducting business activity. The interest was therefore taxable as income from other sources, and the Revenue's position succeeded. Case-Laws Income Tax Fri, 29 Aug 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39356