https://www.taxtmi.com/caselaws?id=447031 Delhi HC held that interest earned on fixed deposits made from funds received for setting up a power transmission system constituted capital receipt, not income from other sources. The court examined the Trust and Retention Account agreement clauses, finding an inextricable link between the surplus fund investments and the power transmission project setup. The agreement required investment proceeds to benefit borrowers/lenders and be readily marketable for project obligations, establishing the interest as capital receipt rather than taxable income. en-us Thu, 30 Nov 2023 00:00:00 +0530 Mon, 23 Dec 2024 10:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447031 Delhi HC held that interest earned on fixed deposits made from funds received for setting up a power transmission system constituted capital receipt, not income from other sources. The court examined the Trust and Retention Account agreement clauses, finding an inextricable link between the surplus fund investments and the power transmission project setup. The agreement required investment proceeds to benefit borrowers/lenders and be readily marketable for project obligations, establishing the interest as capital receipt rather than taxable income. Case-Laws Income Tax Thu, 30 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447031