https://www.taxtmi.com/caselaws?id=449632 ITAT Mumbai dismissed revenue's appeal and partially allowed assessee's appeal. The tribunal held that interest income on margin money kept with banks for guarantees and letters of credit was eligible for adjustment against capital work-in-progress, being inextricably linked to plant setup. Assessment under section 153A was deemed invalid absent incriminating material found during search. Overvaluation addition on imported capital goods was deleted as the underlying DRI show-cause notice was cancelled. Disallowance of excess expenses under section 37(1) was reversed, ruling that actual payments made wholly for business purposes cannot be disallowed merely for exceeding contracted prices. Compensation received for project delays was correctly characterized as capital in nature, adjustable against capital work-in-progress. en-us Thu, 18 Jan 2024 00:00:00 +0530 Fri, 16 Feb 2024 06:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449632 ITAT Mumbai dismissed revenue's appeal and partially allowed assessee's appeal. The tribunal held that interest income on margin money kept with banks for guarantees and letters of credit was eligible for adjustment against capital work-in-progress, being inextricably linked to plant setup. Assessment under section 153A was deemed invalid absent incriminating material found during search. Overvaluation addition on imported capital goods was deleted as the underlying DRI show-cause notice was cancelled. Disallowance of excess expenses under section 37(1) was reversed, ruling that actual payments made wholly for business purposes cannot be disallowed merely for exceeding contracted prices. Compensation received for project delays was correctly characterized as capital in nature, adjustable against capital work-in-progress. Case-Laws Income Tax Thu, 18 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449632