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2021 (7) TMI 85 - AT - Income TaxTreatment of interest earned on fixed deposits made out of funds of the assessee in the period prior to commencement of business - 'revenue or capital' receipt - addition taxing the interest as the income of the appellant under the head income from other sources and that too without allowing the set off of the interest paid on borrowed funds from the same - HELD THAT:- We agree with the Ld. Counsel for the assessee that the issue stands squarely covered by the decision of the ITAT in the case of HP Power Corporation [2015 (5) TMI 1226 - ITAT CHANDIGARH] where identically the facts were found to be different from the preceding year on account of identical ADB loan taken for specific project parked temporary in FDRs on account of delay in the project and the ITAT holding the case to be distinguishable from the preceding year had ruled in favour of the assessee following the decision of the ITAT in the case of M/s. Beas Valley Power Corporation Ltd. [2014 (12) TMI 1378 - ITAT CHANDIGARH] We hold that the interest received to the extent of ADB loan parked in investments in FDRs is not revenue in nature and not liable to be taxed under the head "income from other sources" - Decided in favour of assessee.
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