https://www.taxtmi.com/caselaws?id=5777 Interest earned on money deposited to open a letter of credit for purchase of plant and machinery raised the issue whether such income was taxable as "income from other sources" or was a capital receipt linked to acquisition of capital assets. The SC held that the deposit was inextricably connected with procurement of machinery for setting up the plant; therefore, any interest earned was merely incidental to the acquisition/installation process and bore the character of a capital receipt, attracting the principle in Bokaro Steel rather than Tuticorin Alkali. The appeal was dismissed. en-us Fri, 23 Apr 1999 00:00:00 +0530 Thu, 01 Jan 2026 00:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5777 Interest earned on money deposited to open a letter of credit for purchase of plant and machinery raised the issue whether such income was taxable as "income from other sources" or was a capital receipt linked to acquisition of capital assets. The SC held that the deposit was inextricably connected with procurement of machinery for setting up the plant; therefore, any interest earned was merely incidental to the acquisition/installation process and bore the character of a capital receipt, attracting the principle in Bokaro Steel rather than Tuticorin Alkali. The appeal was dismissed. Case-Laws Income Tax Fri, 23 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5777