https://www.taxtmi.com/caselaws?id=217586 The HC held that interest earned on fixed deposits from borrowed funds intended for establishing a new unit is a capital receipt, not taxable as revenue. The interest is linked to the project setup and reduces the project cost. The Tribunal erred in treating such interest as revenue receipt. The deposits were connected solely to the construction and expansion activity, supporting the capital receipt classification. en-us Tue, 17 Jul 2012 00:00:00 +0530 Wed, 13 Aug 2025 17:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217586 The HC held that interest earned on fixed deposits from borrowed funds intended for establishing a new unit is a capital receipt, not taxable as revenue. The interest is linked to the project setup and reduces the project cost. The Tribunal erred in treating such interest as revenue receipt. The deposits were connected solely to the construction and expansion activity, supporting the capital receipt classification. Case-Laws Income Tax Tue, 17 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217586