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2017 (9) TMI 1806 - AT - Income TaxAccrual of income - Interest earned on the contracts advances by the assessee during the construction period - disallowance of capitalization of interest - Treated as Income from other sources - Held that:- In view of the assessee's own case [2016 (3) TMI 49 - ITAT DELHI ] since the work of construction of the power plant was under progress, interest incomes are also inextricably linked with the setting up of the power plant and such incomes have gone on to reduce the expenses for setting up of the plant and as there was no surplus funds available with the appellant company, therefore, such income is required to be capitalized to be set off against the pre operative expenses. As such the A.O. is not justified in adding the sum as income from other source u/s 56 - Decided in favour of assessee
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