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2017 (7) TMI 1206 - HC - Income TaxCapitalization of Interest income on FDR's - thereby reducing the cost of fixed assets - ITAT observed that, interest received prior to commencement of commercial operations of the specified mega road projects will be in the nature of capital receipt and will be required to be set off against the pre-operative expenditure capitalized under the head “Capital work in progress” and the same cannot be brought to tax under the head “income from other sources”. Held that:- In our considered opinion, the amount which was lying with the assessee was required to be invested in a project. The said amount cannot be kept for a long time ideally in view of the fact that principal amount which was kept for business purpose has been kept for investment purpose ideally. - Order of ITAT confirmed - Decided against the Revenue.
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