Interest earned on FDRs - once the ECB loan which is to be ...

Interest on FDRs from ECB loan for hotel project is capital receipt, offset against capital expenditure.

October 13, 2020

Case Laws Income Tax AT

Interest earned on FDRs - once the ECB loan which is to be utilized for capital expenditure only, then, any interest earned on funds temporarily parked in FDRs is inextricably linked with the setting up of hotel of the assessee, and the same should be held as capital receipts only and is permitted to be set off against the capital expenditure - AT

View Source

← Previous Next →

Interest earned on FDRs - once the ECB loan which is to be ...

Interest on FDRs from ECB loan for hotel project is capital receipt, offset against capital expenditure.

October 13, 2020

Case Laws Income Tax AT

You may also like:

Nature of receipts - treatment to toll charges during the project construction - capital receipt or revenue receipts - toll receipts received during the period of...

Interest expenditure - assessee had availed loan at the interest rate of 12% p.a., whereas, it has advanced loan to a sister concern by charging 9% interest p.a - The...

Disallowance of Forex Loss - although there was import of capital assets in those years when ECB loans were borrowed but there was substantial exports also and the...

Taxability of interest on FDRs - mutually aided co-operative society to build houses for its members - funds collected from the members are in the nature of capital -...

Disallowance of proportionate interest expenditure - capital attributable to project ‘B’ i.e. unfinished project - This interest expenditure disallowed was not related...

Disallowance of deduction u/s 57(iii) - the interest paid on the loans raised against the FDR was having the direct nexus with the interest received from the FDRs and...

Disallowance of interest relating to Capital Work in Progress (CWIP) - The Appellant has furnished the relevant working capital facility agreements and ledger account to...

Assessment of notional interest on loans - loan has been granted by the assessee to its sister concern - As per the provisions of Sec. 36(1)(iii) AO could have...

Disallowance on interest u/s. 36(1)(iii) - AO has compared the payment of interest @ 12%/15% on the unsecured loan obtained by the assessee with the interest amount...

Waiver of capital loan under OTS is not taxable as revenue receipt u/s 28

Interest income earned from funds received from Government for setting up a company is a capital receipt, not revenue receipt, as the funds and income must be utilized...

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Real estate development company advanced loans to its Indian subsidiary for funding step-down foreign subsidiaries undertaking real estate projects. Interest paid on...

Revenue or capital expenditure - The expenditure incurred by assessee such as painting of the hotel, replacement of floor tiles, glazing works etc. are nothing but...

Disallowance of interest expenditure - The interest income earned by the assessee is from loans and advances given to sister concern which is shown by the assessee to...

Quick Updates: