https://www.taxtmi.com/caselaws?id=400117 The Tribunal allowed the assessee's appeals and dismissed the revenue's appeals. It held that interest earned from borrowed funds, temporarily deposited for setting up a plant, should be capitalized. Additionally, interest earned from capital subsidy and equity, linked to the project's establishment, was also deemed capital receipts. The Tribunal relied on precedents emphasizing the capital nature of such receipts. The decision aligned with Supreme Court rulings and upheld the CIT(A)'s treatment of the interest, distinguishing it from cases where funds were not directly related to project setup. en-us Thu, 22 Oct 2020 00:00:00 +0530 Tue, 27 Oct 2020 19:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400117 The Tribunal allowed the assessee's appeals and dismissed the revenue's appeals. It held that interest earned from borrowed funds, temporarily deposited for setting up a plant, should be capitalized. Additionally, interest earned from capital subsidy and equity, linked to the project's establishment, was also deemed capital receipts. The Tribunal relied on precedents emphasizing the capital nature of such receipts. The decision aligned with Supreme Court rulings and upheld the CIT(A)'s treatment of the interest, distinguishing it from cases where funds were not directly related to project setup. Case-Laws Income Tax Thu, 22 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400117