https://www.taxtmi.com/caselaws?id=20442 The High Court held that the interest earned by the company is taxable as income from other sources and cannot be deducted against construction costs. The court ruled against the assessee, stating that interest income is subject to tax under section 56 of the Act and cannot be offset by construction expenses. The court emphasized that interest paid on borrowings for construction is capital expenditure and not deductible. The Tribunal's decision was deemed inconsistent with legal principles, and the court directed further action by the Income-tax Appellate Tribunal. en-us Wed, 21 Jul 1993 00:00:00 +0530 Sat, 14 Nov 2009 10:27:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20442 The High Court held that the interest earned by the company is taxable as income from other sources and cannot be deducted against construction costs. The court ruled against the assessee, stating that interest income is subject to tax under section 56 of the Act and cannot be offset by construction expenses. The court emphasized that interest paid on borrowings for construction is capital expenditure and not deductible. The Tribunal's decision was deemed inconsistent with legal principles, and the court directed further action by the Income-tax Appellate Tribunal. Case-Laws Income Tax Wed, 21 Jul 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20442