Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 551 - AT - Income TaxInterest earned on fixed deposit - interest was set-off against pre-operatives expenditure thereby will go to reduce the cost of CWIP? - notice issued based on AIR information - HELD THAT:- Issue squarely covered by decision of SOLARFIELD ENERGY TWO PVT. LTD. VERSUS ITO [2017 (10) TMI 680 - ITAT MUMBAI] wherein held that interest earned on fixed deposit is capital receipt and has to be set-off against pre-operatives expenditure thereby will go to reduce the cost of CWIP. Ground raised is allowed in favour of assessee. Accrual of income - Testing period revenue - income generated during trial run - income received by the assessee before the commencement of business will reduced from WIP or taxable as ‘income from other sources’ - HELD THAT:- Being consistent with the earlier view taken by the co-ordinate benches of the Tribunal, we are of the view that the income generated during trial run does not arise as the commercial operation of the assessee was not started during the period of trial, thus, the ground of appeal raised by the assessee is allowed.
|