Characterization of income - forfeiture of earnest money from ...

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

February 2, 2021

Case Laws Income Tax AT

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

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Characterization of income - forfeiture of earnest money from ...

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

February 2, 2021

Case Laws Income Tax AT

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