2011 (1) TMI 574

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....is appeal challenging the order passed by the Tribunal holding that the income derived out of the Fixed Deposits kept in the bank to obtain a bank guarantee, constitutes business income and not income from other sources. Aggrieved by the said order the revenue is in appeal. 2. The assessee is a partnership firm carrying on electrical business. In the course of their business activity with the KPT....

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....obtain advance to carry on construction work, are integral part of business activity and therefore the bank interest cannot be treated in isolation from the business income and it is part and parcel of business income only. The Tribunal dismissed the appeal. Aggrieved by the same, the revenue is in appeal. 3. The learned counsel appearing for the appellant submitted that in ITA No. 306/2002 prefe....