https://www.taxtmi.com/caselaws?id=436614 The court held that the interest income earned by the assessee from borrowed funds in short-term deposits was rightly treated as capital receipt, not revenue receipt. The court emphasized the inextricable link between the interest received and the project setup, following Supreme Court precedent. The court also ruled that the Ministry of Chemicals & Fertilizers' clarification regarding the treatment of interest income did not override the Income Tax Act. The appeals were dismissed as they did not raise any substantial question of law, upholding the ITAT's decision on the capital nature of the interest income. en-us Wed, 12 Apr 2023 00:00:00 +0530 Mon, 26 Jun 2023 17:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436614 The court held that the interest income earned by the assessee from borrowed funds in short-term deposits was rightly treated as capital receipt, not revenue receipt. The court emphasized the inextricable link between the interest received and the project setup, following Supreme Court precedent. The court also ruled that the Ministry of Chemicals & Fertilizers' clarification regarding the treatment of interest income did not override the Income Tax Act. The appeals were dismissed as they did not raise any substantial question of law, upholding the ITAT's decision on the capital nature of the interest income. Case-Laws Income Tax Wed, 12 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436614