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2019 (10) TMI 1262 - AT - Income TaxCharacterization of income - Interest Income - revenue or capital receipt - Process of Setting Up The Project Which Has Yet Not Commenced - assessee has earned interest income on temporary investment of same fund in FD till the utilization of the same funds in the project - HELD THAT:- The total interest income has been considered by the assessee as capital receipt which ought to have been inextricably linked with the process of setting up plant and machinery, such receipt will go to reduce the cost of its assets. The interest income has been reduced from CWIP project development cost of respective projects. In this regard, as relying on case of DCIT vs. Adani Power Ltd [2018 (6) TMI 1511 - ITAT AHMEDABAD]on identical issue and identical fact the ITAT Bench in the above cited case has decided the issue in favour of the assessee as held that since the income was earned in a period prior to commencement of business it was in the nature of capital receipt and hence was required to be set off against pre-operative expenses. - Decided in favour of assessee.
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