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2015 (6) TMI 632 - AT - Income TaxTreatment to the interest received on account of bank deposit - capital receipt or income from other sources - Held that:- In the present case, the funds were not surplus funds as the fixed deposits which were made from October onwards were redeemed till April 2009 and funds were utilized for contract payments for the project. During proceedings before Ld. CIT(A), the assessee had filed copy of contract awarded during July 2008 to June 2009 and it had demonstrated that funds which were kept temporarily in the form of fixed deposits were linked with the setting up of project and cannot be categorized as surplus funds. We find that the facts in the present case are also similar to the facts in the case of Indian Oil Panipat Power Consortium Ltd. (2009 (2) TMI 32 - DELHI HIGH COURT). In the present case also, amount was invested by joint venture partner by raising share capital and funds were directly linked with setting up of project. Ld. CIT(A) has made a clear finding with respect to linkage of funds treating the interest income received on account of bank deposit as capital receipt. Therefore, in view of above, we do not find any infirmity in the order of Ld. CIT(A) and the same is upheld. - Decided against revenue.
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