2006 (9) TMI 124

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.... on the observations made by the hon'ble Supreme Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT [1997] 227 ITR 172 in support of her submission that interest is always treated as income whether earned from fixed deposits or from savings bank account. In the present case, the assessee is a co-operative house building society established with the specific objective of purchasing agr....

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....ization of moneys received from members and kept in savings bank account is directly linked with the activity of purchasing agricultural land, developing the same and converting it into residential plots after obtaining approval of the Government of Haryana and thereafter distributing it to the members. Thus the moneys kept in the savings bank account have an inextricable link with the acquisition....