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2016 (7) TMI 1096 - AT - Income TaxAssessment of interest received on compulsory FDR - 'income from other sources' OR 'business activity' - Held that:- Interest earned by the assessee on FDRs has intrinsic and inseggregable nexus with the work undertaken and, therefore, the interest earned by the assessee is capital in nature and shall go towards adjustment against the project expenditure and the same cannot be assessed as income from other sources. SEE CIT vs. Bokaro Steel Ltd. (1998 (12) TMI 4 - SUPREME Court ) and CIT vs. Karnal Co-operative Sugar Mills Ltd.[ 1999 (4) TMI 7 - SUPREME Court ] and CIT vs. Jaypee DSC Ventures Ltd [2011 (3) TMI 309 - Delhi High Court ] - Decided in favour of assessee. Disallowance of loss which includes business expenditure - addition confirmed as no income was earned by the appellant during the relevant previous year - Held that:- The routine expenses incurred by the assessee after setting of the business in our view are allowable as business expenditure. This issue is accordingly decided in favour of the assessee. See CIT Vs. Dhoomketu Builders and Development P. Ltd. [2013 (4) TMI 668 - DELHI HIGH COURT ] wherein held there may be an interval between a business which is set up and a business which is commenced and all expenses incurred after the setting up of the business and before the commencement of the business would be permissible deductions/business loss. - Decided in favour of assessee
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