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2019 (11) TMI 642 - AT - Income TaxInterest income on deposit of margin money with Bank - assessee reduced the interest income from capital work-in-progress (CWIP) - Treatment of income so earned was not accepted by Assessing Officer - AO treated the same as Income from ‘Other Sources' - HELD THAT:- We are of the view that the interest income earned by assessee from margin money deposit with Bank for availing Bang Guarantee, letter of credit facilities for the purpose of procurement of equipment and other material for setting up of power plant will not partake the character of income from other sources. The interest receipt is inextricably linked to business partakes the character of capital receipt and so rightly allowed to be reduced from WCIP by CIT(A), which we affirmed. Hence, the ground of appeal raised by revenue is dismissed.
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