Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 168 - 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:- 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. See CIT v. Karnataka Power Corporation [2000 (7) TMI 72 - SUPREME Court] and CIT v. Karnataka Urban Infrastructure and Development and Finance Corporation and [2006 (2) TMI 114 - KARNATAKA High Court]. The appeal of the Revenue is dismissed.
|