2010 (4) TMI 1147

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.... i. Whether on the facts and circumstances of this case the tribunal was correct in withdrawing the claim of deduction under Sec.10-B of the Income Tax Act? ii. Whether on the facts and circumstances of this case the interest received on FD can be brought under the head 'Income from other sources"?iii. Whether on the facts ana circumstances of this case, the tribunal was right in treating the interest as an income from other sources? 2. The relevant facts of the case are that the appellant Assessee which is a company and a 100% export of processed gherkins having its factory near Davanagere. For the asseement year 1998-99, it filed its return of income claiming exemption under Section 10B of the Income Tax Act 1961 and the same ....

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....business purposes and out of the business compulsions and that the said interest was not on account of any surplus found being deposited in fixed deposit so as to earn interest on the said deposit and the authorities have failed to appreciate these aspects of the matter and treated the said income as income from other sources. He has also relied upon two decisions of this Court to contend that when on account of certain business compulsions the amount has to be kept in a fixed deposit which earns interest, then the same has to be treated as business income and not income from other sources. 5. Per contra, learned counsel for the Revenue supporting the order of the Tribunal and other authorities has submitted that no substantial question ....