Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 559 - HC - Income TaxNature of income - Interest earned on margin money - Whether the interest earned by the assessee on the margin money deposited by it for borrowing amounts to finance its expansion i.e. setting-up of 9th Boiler Project for generation of power was capital in nature – Held that:- The interest received is “inextricably linked’ with the construction of the power project, in as much as the loan was utilized to make advances linked to the expansion - The margin money from which the interest was earned was placed for the purpose of taking the loan - The loan was given for the purpose of expansion – Relying upon CIT vs. Bokaro Steels Ltd. [1998 (12) TMI 4 - SUPREME Court] - the Tribunal’s approach and finding cannot be faulted and no question of law arises – decided against Revenue.
|