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| The Tax Publishers2020 TaxPub(DT) 3025 (Jp-Trib) INCOME TAX ACT, 1961
Section 4
In view of decision of Tribunal in assessee's own case in ITA No. 963/JP/12 & 282/JP/15, dated 19-12-2016, and following the principle of consistency, it was held that the interest received prior to commencement of commercial operations of the road projects will be in the nature of capital receipt and will be required to be set off against the pre-operative expenditure capitalized under the head 'Capital work-in-progress' and the same could not be brought to tax under the head 'Income from other sources.
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Income - Chargeability - Interest receipt from FDRs placed with its banks -
Assessee filed appeal against the order of CIT(A) whereby CIT(A) upheld the action/order of AO considering interest receipt from FDRs placed with its banks as income from other sources, rather than reducing it from the capital cost of construction of the roads for the period prior to commencement of commercial operations of the roads. Held: Following the principle of consistency and following the decision of Tribunal in assessee's own case in ITA No. 963/JP/12 & 282/JP/15, dated 19-12-2016, it was held that the interest received prior to commencement of commercial operations of the specified mega road projects would be in the nature of capital receipt and would be required to be set off against the pre-operative expenditure capitalized under the head 'Capital work-in-progress' and the same could not be brought to tax under the head 'Income from other sources'.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12 to 2013-14
INCOME TAX ACT, 1961
Section 14A
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