https://www.taxtmi.com/caselaws?id=335296 The High Court held that interest income earned on a deposit for opening a Letter of Credit (LC) used to purchase plant and machinery should not be taxable as "income from other sources." The court relied on a precedent where it was established that interest on such deposits is a capital receipt reducing the cost of the asset. The decision favored the appellant, distinguishing it from a Supreme Court decision cited by the Tribunal. The appeal was disposed of in favor of the assessee. en-us Thu, 10 Nov 2016 00:00:00 +0530 Tue, 29 Nov 2016 12:52:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335296 The High Court held that interest income earned on a deposit for opening a Letter of Credit (LC) used to purchase plant and machinery should not be taxable as "income from other sources." The court relied on a precedent where it was established that interest on such deposits is a capital receipt reducing the cost of the asset. The decision favored the appellant, distinguishing it from a Supreme Court decision cited by the Tribunal. The appeal was disposed of in favor of the assessee. Case-Laws Income Tax Thu, 10 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335296