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2022 (7) TMI 254 - ITAT BANGALORECharacterization of income - Taxability of interest income - HELD THAT:- As decided in own case [2022 (1) TMI 653 - KARNATAKA HIGH COURT] interest income cannot be considered as income and has to be capitalized. Respectfully following the same, we hold that interest income in question brought to tax by the AO has to be held as not taxable and the addition made in this regard is directed to be deleted. For other income being tender fees and miscellaneous income is concerned, we find the Hon’ble Madras High Court in the case of M/s. Indian Power Projects Ltd.[2015 (4) TMI 1181 - MADRAS HIGH COURT] dealt with identical issue arising in the case of an assessee which is a public sector undertaking such as the assessee to hold that the receipts are capital receipts which would go to reduce the cost of the project and inextricably linked with the setting up of the business of the assessee and not chargeable to tax as income from other sources. Appeal of assessee allowed.
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