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2017 (10) TMI 1540 - ITAT CUTTACKInterest on mobilisation advance received from the contractors during the construction/project period - Whether a capital receipt and is adjustable against pre-operative expenses? - assessee who is engaged in the civil construction works and management of railway linkage and has made payments of mobilisation advance to the contractors and has received interest on such mobilisation advances and claimed set of adjusted against pre-operative expenses - HELD THAT:- In the present case the interest on mobilisation advance is similar to the decision of the Tribunal in case of Angul Sukinda Railway Ltd. [2017 (4) TMI 515 - ITAT CUTTACK] and the mobilisation advance given to the contract were for the purpose of contract work of laying the railway line and intrinsically connected with the capital expenditure of the assessee prior to the commencement of its business. Accordingly, we delete the addition made by the AO and allow the grounds of appeal of assessee
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