VIJAYA LAXMI SUGAR MILLS LTD. vs COMMISSIONER OF INCOME TAX, KANPUR

The Supreme Court held that the liquidator, in realizing the assets of a company in liquidation, does not engage in the business of the company as per Section 28 of the Income Tax Act, 1961. The interest income derived from fixed deposits made from the sale proceeds is taxable under Section 56 as 'Income from other sources', not as business income. Additionally, the Court ruled that expenditures incurred by the liquidator cannot be deducted under Section 57(iii) since they were not directly related to earning the interest income.