2007 (11) TMI 651

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....y the assessee raising the following substantial question of law: "Whether the interest garned by the appellant on the fixed deposit invested for the purpose of its business has to be treated as business income or income from other sources? 2. appellant-assessee is dealing in silk waste and silk textiles. Certain monies were invested in fixed deposits in order to obtain letter of credit. Int....

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....f this court in 290 ITR-598 Commissioner of Income-Tax Vs. Producin Pvt. Ltd. contends that interest received by the assessee on the fixed deposit has to be treated as income from business only. According to him, money was invested in fixed deposit only to get benefit of letter of credit and not to invest money to earn any interest. In other words, he contends that in connection with the assessee'....