Form 26AS evidence requires successor-entity accounting verification after business transfer, while invoice-supported related-party advertising expend...
Money-laundering judgment timing requires awaiting the scheduled-offence decision despite continuation of the underlying trial where outcomes directly...
Accredited investor eligibility expands through securities-market exposure, while alternative investment fund disputes require prescribed resolution a...
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The HC held that interest income earned on funds temporarily deposited in bank during pre-commencement of business for acquisition of capital asset like coal mine is inextricably linked to the cost of acquisition and cannot be charged to tax under 'income from other sources'. Such interest income is to be credited to capital work-in-progress (CWIP) and treated as part of capital cost. However, this accounting treatment applies only for assets requiring considerable time for construction or putting to use, not for off-the-shelf products. The Assessee, incorporated to acquire and operate coal mine overseas, had borrowed funds for this purpose which were temporarily kept in interest-bearing deposits pending acquisition. Since the attempt was aborted, the borrowed funds were repaid. The interest earned on such funds was rightly treated as part of capital cost creditable to CWIP. Decided in favour of the Assessee.
The HC held that interest income earned on funds temporarily deposited in bank during pre-commencement of business for acquisition of capital asset like coal mine is inextricably linked to the cost of acquisition and cannot be charged to tax under 'income from other sources'. Such interest income is to be credited to capital work-in-progress (CWIP) and treated as part of capital cost. However, this accounting treatment applies only for assets requiring considerable time for construction or putting to use, not for off-the-shelf products. The Assessee, incorporated to acquire and operate coal mine overseas, had borrowed funds for this purpose which were temporarily kept in interest-bearing deposits pending acquisition. Since the attempt was aborted, the borrowed funds were repaid. The interest earned on such funds was rightly treated as part of capital cost creditable to CWIP. Decided in favour of the Assessee.
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