https://www.taxtmi.com/caselaws?id=246122 The court held that interest earned by the assessee on margin money deposited for borrowing to finance its expansion project is capital in nature and not taxable. The decision was based on precedents and legal principles establishing the connection between the interest earned and the purpose of the loan for the expansion project. The High Court upheld the CIT (Appeals) decision, emphasizing that interest linked to setting up a project is a capital receipt. The revenue's argument that the source of funds is irrelevant in assessing interest was rejected, and the appeal was dismissed. en-us Fri, 28 Mar 2014 00:00:00 +0530 Thu, 17 Apr 2014 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246122 The court held that interest earned by the assessee on margin money deposited for borrowing to finance its expansion project is capital in nature and not taxable. The decision was based on precedents and legal principles establishing the connection between the interest earned and the purpose of the loan for the expansion project. The High Court upheld the CIT (Appeals) decision, emphasizing that interest linked to setting up a project is a capital receipt. The revenue's argument that the source of funds is irrelevant in assessing interest was rejected, and the appeal was dismissed. Case-Laws Income Tax Fri, 28 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246122