Tax / Income Tax : Interest From Deposits and Tax liability under S.56 of Income-tax Act, 1961

Tax / Income Tax : Interest From Deposits and Tax liability under S.57 of Income-tax Act, 1961

In case of Ashapura Co-op Credit Society Ltd v. DCIT [2025] GCtR 1388 (ITAT, Ahmedabad), it was held that when interest income was earned by assessee from deposits placed with co-operative institutions under the head “Income from Other Sources” as per section 56 of the Income-tax Act, 1961 and assessee had already offered the impugned income under section 56 and not as “Profits and Gains of Business”, then AO should not re-characterise the income.