TMI Blog2024 (4) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... any is deriving interest income on the Fixed Deposits made by it in the earlier years. Respectfully following the decision of the Co-ordinate Bench in the AYs 2013-14 2014-15 [ 2020 (3) TMI 1194 - ITAT AHMEDABAD ] we hold that the interest income earned on Fixed Deposits pertaining to the prior period commencement of business was in the nature of capital receipt . As held in that year the preoperative expenses of the assessee has to be adjusted with this capital receipt and only the balance expense, if any, need to be amortized as per provisions of Section 35D of the Act. Accordingly, the CIT(A) had rightly allowed the claim of the assessee. Appeal filed by the Department is dismissed. - Ms. Suchitra Kamble, Judicial Member And Shri Wasee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be made. On the facts and in the circumstances of the case and in law, the Ld.CIT(A)-12, Ahmedabad ought to have upheld the order of the Assessing Officer. 4) It is, therefore, prayed that the order of the ld.CIT(A) may be set aside and that the Assessing Officer may be restored to the above extent. 3. The brief facts of the case are that the assessee-company filed its return of income for Asst. Year 2015-16 on 30/09/2015 declaring total income under normal provisions at Rs. 1,73,64,470/- and Book Profit u/s. 115JB of the Income Tax Act, 1961 (hereinafter referred to as the Act ) of Rs. 1,95,34,645/-. The case was selected for scrutiny assessment and a notice u/s. 143(2) and u/s. 142(1) of the Act was issued on 19/09/2016. Further, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said order is as under: In the light of the above facts and after considering the various judicial pronouncements of the Hon ble High Courts and Co-ordinate Benches of the ITAT as cited above, we consider that the impugned interest receipt by the assessee company is related to the prior period to commencement of business which is in nature of capital receipt and was required to be set off against pre-operative expenses. Therefore, first ground of appeal of the assessee for treating expenses to the amount of Rs. 2,33,36,037/- as revenue expenditure is dismissed. However, the alternative ground of appeal of the assessee for treating the interest income earned on fixed deposit pertaining to prior period commencement of business is allowed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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