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2022 (1) TMI 653 - HC - Income TaxCharacterization of income - unutilized funds of the project - government funds are deployed for an ultimate use in setting up of an infrastructure project - capital or revenue receipt - income generated out of earlier release of State Government to BMRCL before the commencement of BMRCL project - release as equity would be made to BMRCL only after adjusting this income - HELD THAT:- As income generated out of earlier release of State Government for its project would have to be converted into State’s equity towards the project and the same cannot be counted as income of BMRCL. Thus, there is no profit motive as the entire fund entrusted and the interest accrued therefrom has to be utilized only for the purpose of scheme. Thus, it has to be capitalized and cannot be considered as revenue receipts. We confirm the order impugned passed by the Tribunal answering the substantial questions of law in favour of the assessee
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