https://www.taxtmi.com/caselaws?id=34090 The High Court upheld the ITAT's decision in dismissing the Revenue's appeal and allowing deductions on interest income claimed by the respondent-assessee under Section 57(iii) of the Income Tax Act, 1961. The court affirmed that interest income is generally revenue in nature unless received as damages or compensation, and the nature of receipts as capital or revenue depends on the stage of business activities, which in this case was construction. Additionally, the court upheld the treatment of rent and interest received by the respondent-assessee as capital receipts due to their direct connection to construction activities, reducing the cost of construction. en-us Fri, 03 Jul 2009 00:00:00 +0530 Tue, 14 Jul 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34090 The High Court upheld the ITAT's decision in dismissing the Revenue's appeal and allowing deductions on interest income claimed by the respondent-assessee under Section 57(iii) of the Income Tax Act, 1961. The court affirmed that interest income is generally revenue in nature unless received as damages or compensation, and the nature of receipts as capital or revenue depends on the stage of business activities, which in this case was construction. Additionally, the court upheld the treatment of rent and interest received by the respondent-assessee as capital receipts due to their direct connection to construction activities, reducing the cost of construction. Case-Laws Income Tax Fri, 03 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34090