COMMISSIONER OF INCOME TAX, LUCKNOW vs U.P. COOPERATIVE FEDERATION LTD.

The Supreme Court held that Clause (iii) of Section 14(3) of the Income Tax Act, 1922 does not exempt interest earned on cash security deposits and temporary loans from taxation. The Court affirmed the Appellate Tribunal's decision that the interest received from the cooperative sugar factory and member societies did not qualify as 'interest from investments' under the statute. Consequently, the High Court's ruling in favor of the assessee was overturned, and the Revenue's appeal was allowed.