9911796707
TMI Blog2023 (10) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... w taken by the CIT(A), insofar as the first issue is concerned. We may note something which appellant/revenue, has brought to our notice, that since the pre-operative stage period spilled over to two succeeding years as well, the matter came up before the AO and that the AO made no addition with regard to the expenses incurred during this period. As following the principle of consistency, in our view, no substantial question of law arises, insofar as the first issue is concerned. Income from other Sources - interest was earned on fixed deposit created out of surplus funds, which were used for the execution of the project - HELD THAT:- Tribunal correctly deleted the addition made with regard to the interest as it is held when it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erned, the record shows that the Assessing Officer (AO) had disallowed the deduction amounting to Rs. 5,75,23,000/-, claimed by the assessee. 4. The Tribunal, according to us, noticed quite correctly that there is a distinction between the date when the business was set up and the date when the business was commenced. The expenses incurred between these two dates have rightly been categorized as revenue expenditure. Therefore, the Tribunal proceeded to sustain the view taken by the CIT(A), insofar as the first issue is concerned. 5. In this regard, we may note something which Mr Sanjeev Menon, learned standing counsel, who appears on behalf of the appellant/revenue, has brought to our notice, that since the pre-operative stage period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds invested in fixed deposit were inextricably linked to the setting up of the plant. 11. It is in this context that the Tribunal made the following observations and deleted the addition made with regard to the interest: 17. As has been held in preceding paras, when it is proved that the assessee has set up the business, earned the income from interest during the construction period and has set off the same against the loss under the head PGBP as per section 71 of the Act, the ld. CIT(A) has rightly deleted the addition as the funds parked in the bank on which interest has been earned were inextricably linked with the setting up of the hospitability business. 12. Given the foregoing discussion, we are of the opinion that no subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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