https://www.taxtmi.com/caselaws?id=287117 The ITAT ruled in favor of the assessee, determining that the interest income of Rs. 21,36,598/- should be treated as a capital receipt rather than a revenue receipt. This decision was based on the finding that the interest income was inextricably linked to setting up the project, aligning with previous judicial interpretations. The ITAT did not extensively address the initiation of penalty proceedings under Section 271(1)(c) of the Income Tax Act, but the favorable outcome on the primary issue implied that penalty proceedings would likely not proceed. en-us Thu, 17 Oct 2019 00:00:00 +0530 Sun, 29 Mar 2020 19:03:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=287117 The ITAT ruled in favor of the assessee, determining that the interest income of Rs. 21,36,598/- should be treated as a capital receipt rather than a revenue receipt. This decision was based on the finding that the interest income was inextricably linked to setting up the project, aligning with previous judicial interpretations. The ITAT did not extensively address the initiation of penalty proceedings under Section 271(1)(c) of the Income Tax Act, but the favorable outcome on the primary issue implied that penalty proceedings would likely not proceed. Case-Laws Income Tax Thu, 17 Oct 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=287117