https://www.taxtmi.com/caselaws?id=180238 The Tribunal ruled in favor of the assessee regarding the taxation of interest earned on funds in the bank for Assessment Years 2006-07 and 2007-08. The Tribunal held that the interest income was linked to business activities, not surplus funds, and should be capitalized to reduce preoperative expenses. Additionally, the Tribunal found that the enhancement of income for Assessment Year 2006-07 by the CIT(A) without proper notice was invalid under section 251 of the IT Act, ultimately allowing the assessee's appeals. en-us Thu, 21 Apr 2011 00:00:00 +0530 Fri, 18 Mar 2016 18:28:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180238 The Tribunal ruled in favor of the assessee regarding the taxation of interest earned on funds in the bank for Assessment Years 2006-07 and 2007-08. The Tribunal held that the interest income was linked to business activities, not surplus funds, and should be capitalized to reduce preoperative expenses. Additionally, the Tribunal found that the enhancement of income for Assessment Year 2006-07 by the CIT(A) without proper notice was invalid under section 251 of the IT Act, ultimately allowing the assessee's appeals. Case-Laws Income Tax Thu, 21 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180238