Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Kaveri Gas Power Ltd. Versus The Assistant Commissioner of Income-Tax

2016 (2) TMI 349 - ITAT CHENNAI

Interest income - treated as income from other sources or capital gain - Held that:- The Delhi High Court, after considering decision in the case of Bongaigaon Refinery & Petrochemicals Ltd. vs. CIT( 2001 (7) TMI 4 - SUPREME Court ), in the case of CIT v. Jaypee DSC Ventures Ltd. (2011 (3) TMI 309 - Delhi High Court ), observed that the interest earned by the assessee on the fixed deposit made for performance guarantee of contract was capital in nature and cannot be assessed as income from other .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

CIT ORDER Per Chandra Poojari, Accountant Member These appeals by the assessee are directed against the common order of the Commissioner of Income-tax(Appeals) dated 29.9.2015 for the asst. years 2005-06 and 2006-07. 2. The common ground raised in these appeals is that the CIT(Appeals) erred in confirming the action of the Assessing Officer in treating the interest income as income from other sources. 3. The facts of the case are that as the assessee has not filed any details and evidences durin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tribunal allowed the claim of the assessee. However, the order of the Tribunal was not accepted by the AO, he assessed the interest income of 11,97,715/- as income from other sources. Aggrieved by this, the assessee went in appeal before the CIT(Appeals). 4. Before the CIT(Appeals), the assessee contended that interest earned from fixed deposit with State Bank of Travancore to open bank guarantee in favour of M/s. GAIL (India) Ltd. is to be treated as income from other sources. However, the CIT .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sion of the Hon ble Apex Court in the case of CIT vs. Karnal Co-operative Sugar Mills Ltd. (243 ITR 2). In this case, it was held that interest earned during construction period on money deposited to open letters of credit for purchase of machinery is incidental to the acquisition of assets and has to be capitalised. It cannot be assessed as income from other sources . Examining the present case on this touchstone, we find that the borrowed funds in this case has been utilized to open bank guara .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version