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2018 (7) TMI 1622 - HC - Income TaxTreating the interest income received on mobilisation advance to the contractors as revenue income - the said interest income was adjusted in the final bills of the contractor and resulted in reduction of the cost of construction - Held that:- The advances, which the assessee made to the contractors to facilitate the construction activity of putting together a very large project was “as much to ensure that the work of the contractors proceeded without any financial hitch as to help the contractors”. These facilities were found to be intrinsically connected with the construction of the steel plant. They were found to be rightly held as capital receipts and not income of the assessee from any independent source. Respectfully following the decision of Bokaro Steel Ltd.[1998 (12) TMI 4 - SUPREME COURT] we answer the questions of law in favour of the assessee and against the revenue.
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