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2020 (10) TMI 656 - ITAT CUTTACKCharacterization of income - interest received on fixed deposit during construction period - income from other sources or capital receipt - HELD THAT:- Assessee company is a public limited company and the share application money was kept pending for allotment for a long time. As specifically asked questions to the assessee like Date of receipt of share application money & allotment to shareholders?, Whether the company has followed the relevant rules/provisions of the Companies Act in this regard?, If the shares have not been allotted within 60 days from the date of receipts then the discloser policy in the balance sheet?, Whether it should be treated as current liability or otherwise and treatment in the books of account of the company?, Use of share application money during pendency for allotment? , Applicability of company deposit rules and its classification in the balance sheet & utilization of interest or interest on such deposit and taxability as per the Income Tax Act, 1961?, fixed deposit is a short term fixed deposit or long term fixed deposit and/or auto renewal system in the bank and after maturity the utilization of the interest? As assessee could reply only the date of allotment of shares as per balance sheet note No.4.2, which is 29.05.2014 and the rest were remained unanswered. Therefore, the ld. AR submitted that let the AO may examine the above questions which are unanswered. Thus with the consent of both the parties for sending back to the file of AO for the examination of above questions for deciding the issue raised as aboveafresh, we remit the matter back to the file of AO for fresh adjudication in the light of the above questions and taxability of interest income as per Income Tax Act, 1961. - Appeal of the assessee is allowed for statistical purposes
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