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2018 (5) TMI 1868 - AT - Income TaxInterest income earned during the construction period on bank deposits made out of share application money received - taxable as "Income from other sources" or reduce the capital cost of the plant which is being set up by the assessee-company - Held that:- As decided in BANK NOTE PAPER MILL INDIA P. LTD. [2017 (8) TMI 168 - ITAT BANGALORE] Interest earned should only go to reduce the capital cost of the project to be set up by the respondent company and it should not be brought to tax, as the interest is earned on capital account. No reason to differ with decision rendered by the coordinate bench of this Tribunal (supra) in assessee's own case for earlier assessment years, the fact that whether the deposits are short term or long term has no bearing on the issue as the issue is required to be adjudicated having regard to the object of placing the deposits. The coordinate bench has decided this issue in favour of the assessee company having regard to the objects behind placing the deposits, the decision does not call for any interference. Accordingly, the appeals filed by the assessee are allowed.
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