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2019 (3) TMI 1457 - AT - Income TaxInterest received on FDRs/ICDs with bank/NBFCs - Capital receipt or revenue receipt - unutilized funds which could not be used in the development of the port terminal due to various reasons such as clearances from Govt. Authorities and due to local protests by the public - addition under the normal provisions of the Act as well as u/s 115JB - funds were received as share capital solely for the development of port terminal and other facilities at Karanja Creek and were raised on Landon stock exchange - HELD THAT:- We hold that the interest income received by the assessee from the FDRs/ICDs made out of funds are inextricably linked to the development of port terminal and other infrastructure at Karanja Creek which is yet to be completed and commissioned. We would like to add that the these funds could not be used for the development work of the port due to late issuance of permissions/clearances by the Govt authorities and also due to some local issues. Therefore, the interest income is a capital receipt and is not taxable at all both under the normal provisions of the Act as well as u/s 115JB of the Act. The appeal of the assessee is allowed.
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