TMI Blog2008 (8) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... interest earned is required to be credited against pre-operative expenses(pending capitalization) incurred by the Assessee - loss on account of foreign exchange rate fluctuation cannot be disallowed – revenue appeal dismissed - 811/2008 - - - Dated:- 19-8-2008 - Advocates. Department Through: Mr. R.D. Jolly with Mrs. P.L. Bansal, Assessee Through: Mr. Ajay Vohra with Ms. Kavita Jha, Cora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of letters of credit for import of capital goods. On this amount, the Assessee earned an interest of Rs.5,25,385.87. The Assessing Officer treated this amount as income from other sources and taxed it accordingly. The Commissioner of Income Tax (Appeals) [CIT(A)] decided against the Assessee but the Tribunal decided in favour of the Assessee and held that the amount cannot be taxed as income f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned, the Assessee commenced its business on the subsequent assessment year and there is no dispute about the fact that the amount deposited by the Assessee was not idle money on which it was earning interest. Under the circumstances, the interest earned to the tune of Rs.5,25,385.87 is required to be credited against pre-operative expenses incurred by the Assessee. In our opinion, no subst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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