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2018 (2) TMI 1764 - HC - Income TaxNature of Interest income - Interest earned on deposits and advances made for the new unit being established - Business income or Income from Other sources - ITAT allowed the assessee s claim that the interest was inextricably linked to the setting up of the project and therefore constituted business income. - Held that - It is evident that both the lower authorities followed the ruling of the Supreme Court on the question of treatment of interest in such cases. Furthermore this Court too has in the case of the same assessee 2012 (10) TMI 524 - DELHI HIGH COURT held that similar income had to be treated as business income. Therefore no substantial question of law arises in this appeal - Decided against the revenue.
The Delhi High Court dismissed the Revenue's appeal against the ITAT order, which treated interest derived from mobilisation advance as business income in a new project. The CIT(A) applied the Supreme Court's judgment and previous court decisions to support this treatment. The High Court found no substantial question of law and upheld the decision to treat the interest as business income.
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