Forfeited Earnest Money from Contractors Classified as Capital Receipt, Reducing Project Costs Before Operations Begin.

Characterization of income - forfeiture of earnest money from the contractors, forfeited and appropriated by the assessee - The commercial operations of the power plant has not yet commenced during the impugned ay and the project was under implementation. Thus, the receipts are inextricably linked to the project - to be treated as capital receipt which will go on to reduce cost of project - AT .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X