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2016 (2) TMI 349 - AT - Income TaxInterest income - treated as income from other sources or capital gain - Held that:- The Delhi High Court, after considering decision in the case of Bongaigaon Refinery & Petrochemicals Ltd. vs. CIT( 2001 (7) TMI 4 - SUPREME Court ), in the case of CIT v. Jaypee DSC Ventures Ltd. (2011 (3) TMI 309 - Delhi High Court ), observed that the interest earned by the assessee on the fixed deposit made for performance guarantee of contract was capital in nature and cannot be assessed as income from other sources. Similarly, the Tribunal on another occasion in assessee’s case, has taken the same view. Considering the facts and circumstances of the case, we are of the opinion that the deposit made by the assessee had an inextricable nexus with the implementation of the power project. - Decided in favour of assessee.
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