Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 1050 - AT - Income TaxCorrect head of income - treatment of interest on FDR s during the construction period - capital receipt or income from other sources - HELD THAT:- We find that the facts of the present case are similar to the facts before the Hon 'ble Supreme Court in Tuticorin Alkali Chemicals & Fertilizers Ltd. Vs. CIT[1997 (7) TMI 4 - SUPREME COURT] and applying the ratio laid down by the Hon 'ble Apex Court we hold that the interest earned by the assessee by parking its funds in short term deposits with the bank is assessable as income from other sources. We find no merit in the reliance placed upon the decision in Indian Oil Panipal Consortium Ltd. [2009 (2) TMI 32 - DELHI HIGH COURT] as the facts of the said case were at variance. We also find no merit in the plea of the assessee that the interest earned by the assessee is to be infused as share capital and/or to be returned to the Principals who had had advanced the loans to the assessee as the assessee has failed to bring on record any evidence to establish its claim. Merely because the money in future would be utilized for capital expenditure does not make the receipts as capital receipts in the hands of the assessee. - Decided against assessee.
|