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2020 (9) TMI 812 - AT - Income TaxNetting off of the interest income against interest expenditure - taxing interest received during pre-construction period under the head "Income from other sources" - contention that where the fixed deposits are inextricably linked with the business of the assessee, the interest income therefrom has to be set off against the preoperative expenses of the assessee - HELD THAT:- We find that the assessee has deposited the funds which were not immediately required for the assessee’s business and as and when required, they were immediately withdrawn and used for business purposes. Therefore, there is a distinction in facts between earlier years where the Tribunal decided the issue against the assessee, and the AYs before us. Thus following the decision of the coordinate bench of ITAT, Mumbai in the case of Kamat Hotels (India) ltd. [2017 (11) TMI 849 - ITAT MUMBAI] we direct the AO to allow the netting off of the interest income against interest expenditure. Accordingly, the additional ground of appeal of the assessee is allowed.
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