Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
Correct head of income - addition of interest income on margin money kept with Bank/Financial Institution taxable under the head ‘income from other sources’ - The ITAT held that, the fact that interest has been earned and the margin money was kept for purpose of guarantees and letter of credit in relation to setting up of the project has not been disputed, thus, same being linked inextricably with setting up of the plant, interest is eligible for deduction against the cost of the asset or capital work-in-progress.
Correct head of income - addition of interest income on margin money kept with Bank/Financial Institution taxable under the head ‘income from other sources’ - The ITAT held that, the fact that interest has been earned and the margin money was kept for purpose of guarantees and letter of credit in relation to setting up of the project has not been disputed, thus, same being linked inextricably with setting up of the plant, interest is eligible for deduction against the cost of the asset or capital work-in-progress.
Note: It is a system-generated summary and is for quick reference only.
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