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2020 (2) TMI 116 - AT - Income TaxCharacterization of income - treatment to interest receipt - business receipt or income from other sources - HELD THAT:- As decided in own case funds obtained by the assessee for its infrastructure project has been temporarily parked to reduce interest burden thereon and accounted for in accordance with Accounting Standard 16 of ICAI The principle that the interest earned out of term deposits made out of the business funds available with the assessee before they are utilized for actual business, is incidental to business activity of the assessee and accordingly, should be considered as business income and not income from other sources. Disallowance u/s 14A - HELD THAT:- Disallowance under section 14 A is to be restricted to the exempt income earned. This view is supported by various decisions referred in the appellate order referred above. Hence this ground is also dismissed. MAT - Disallowance under section 14 A cannot be imported for adjusting the book profit under section 115 JB
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