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2015 (2) TMI 531 - AT - Income TaxInterest income from temporary advancement of funds - income from Other Sources OR Profits & Gains of Business or Profession - business activity had not yet started - Held that:- CIT(A) correctly concluded that though the borrowing was made for the purpose of business but the amount was advanced and interest earned for the period prior to commencement of business in the instant case and hence interest paid by assessee cannot be allowed as business expenditure. Decision of the Apex Court in the case of Tuticorin Alkalies Chemicals & Fertilizers Ltd. [1997 (7) TMI 4 - SUPREME Court] and observed, on identical facts, that the interest received by the assessee cannot be treated as income from business and it has to be treated as income from other sources. Similarly the interest expenditure has to be capitalised. - Decided against assessee.
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