https://www.taxtmi.com/caselaws?id=49574 Interest earned by a co-operative bank on short-term fixed deposits placed with another bank was treated as part of the bank's ordinary banking business, because keeping surplus funds in readily realisable deposits was a normal mode of conducting banking operations and such funds remained circulating capital. The commentary distinguishes this from income arising from investments outside the ordinary business. As the residuary head applies only where income does not fall under a business head, the interest was characterised as business income and within the relevant exemption, rather than income from other sources. en-us Mon, 22 Feb 1960 00:00:00 +0530 Wed, 03 Sep 2014 17:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49574 Interest earned by a co-operative bank on short-term fixed deposits placed with another bank was treated as part of the bank's ordinary banking business, because keeping surplus funds in readily realisable deposits was a normal mode of conducting banking operations and such funds remained circulating capital. The commentary distinguishes this from income arising from investments outside the ordinary business. As the residuary head applies only where income does not fall under a business head, the interest was characterised as business income and within the relevant exemption, rather than income from other sources. Case-Laws Income Tax Mon, 22 Feb 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49574