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2021 (5) TMI 413 - AT - Income TaxCorrect head of income - income from other sources or business income or capital receipt - interest accrued on funds and other miscellaneous income - as per AO funds not required immediately by the assessee company for its business purposes and which were invested in fixed deposit and for the advances given to the contactors - assessed the interest income and miscellaneous income (for sale of a scrap) under the head ‘Income from other sources’ - CIT(A) deleted the addition - HELD THAT:- As relying on own case [2017 (9) TMI 1930 - ITAT DELHI] interest incomes are also inextricably linked with the setting up of the power plant and such incomes have gone on to reduce the expenses for setting up of the plant and as there was no surplus funds available with the appellant company, therefore, such income is required to be capitalized to be set off against the pre operative expenses. As such the A.O. is not justified in adding the sum as income from other source u/s 56 - Decided in favour of assessee.
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