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2016 (12) TMI 1829 - AT - Income TaxTreatment of the interest received prior to commencement of commercial operations of the specified mega road projects - Income from other sources or capital gain - As per the assessee, it is in the nature of capital receipt and will be required to be set off against the pre-operative expenditure capitalized under the head “Capital work in progress” and the same cannot be brought to tax under the head “income from other sources.”- HELD THAT:- Respectfully following the decision of Coordinate Bench in assessee’s own case [2016 (9) TMI 957 - ITAT JAIPUR] we hold that the interest received prior to commencement of commercial operations of the specified mega road projects will be in the nature of capital receipt and will be required to be set off against the pre-operative expenditure capitalized under the head “Capital work in progress” and the same cannot be brought to tax under the head “income from other sources”. - Decided in favour of assessee.
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