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2017 (8) TMI 953 - ITAT MUMBAIAddition for interest earned from the fixed deposit of share application money before commencement of business - Held that:- The undisputed facts of the case are that the funds were raised by way of share application money by the assessee and when the same were not required immediately in the construction activity, the money was put into the Corporation Bank and Kotak Mahindra Bank in short term deposits which yielded an interest of ₹ 34,40,144/- and ₹ 59,67,424/- respectively. The said interest of ₹ 94,07,568/- was reduced from the capital work in progress as on 31.3.2009 and thus capitalized on the ground that the interest was received out of own money and not out of the borrowed funds. Whereas in the case of the assessee the decision in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd [1997 (7) TMI 4 - SUPREME Court] the facts were distinguishable and therefore not applicable to the present case. - Decided in favour of assessee. Disallowance u/s 14A - Held that:- We find that there is question of disallowance by application of provisions of section 14A r.w.r 8D as the assessee has not claimed any expenditure as the entire expenditure has been capitalized under the head work in progress. We are in agreement with the conclusion drawn by the ld.CIT(A) that the assessee has neither claimed any exempt income as the same was reduced from the capital work in progress and all the expenses were capitalized in the capital work in progress thereby not claiming any expenses out of taxable income and accordingly uphold the same by dismissing the ground taken by the revenue.
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