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| The Tax Publishers2020 TaxPub(DT) 1327 (Del-HC) INCOME TAX ACT, 1961
Section 260A read with section 56
On issue as to during stage of pre-commencement of business, interest derived by assessee from borrowed funds which were invested in fixed deposits with banks would be chargeable to tax under head 'Income From Other Sources' and would not go to reduce capital work in progress, appeal was admitted as raising substantial question of law.
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Appeal (High Court) - Maintainability - Substantial question of law - Interest derived from borrowed funds whether chargeable as 'Income From Other Sources' instead of being reduced from capital work in progress
Issue arose as to whether Tribunal erred in not appreciating that, during stage of pre-commencement of business, interest derived by assessee from borrowed funds which were invested in fixed deposits with banks would be chargeable to tax under head 'Income From Other Sources' and would not go to reduce capital work in progress. Held: Appeal was admitted as raising substantial question of law.
REFERRED : CIT v. Bokaro Steel Limited (1999) 1 SCC 645 : 1999 TaxPub(DT) 1094 (SC) Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC) : (1997) 6 SCC 117 : 1997 TaxPub(DT) 1304 (SC) CIT v. Sasan Power Ltd. (2012) 18 taxmann.com 182 (Delhi) : 2013 TaxPub(DT) 1836 (Del-HC) Indian Oil Panipat Power Consortium Limited, New Delhi v. ITO (2009) 181 Taxman 249 (Delhi) : 2009 TaxPub(DT) 1494 (Del-HC)
FAVOUR : Appeal admitted
A.Y. :
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