https://www.taxtmi.com/caselaws?id=760159 Kerala HC held that interest income earned by a company from short-term deposits of government funds allocated for project setup constitutes capital receipt, not revenue receipt. The court determined that since the funds and derived interest were mandatorily restricted for exclusive project use and the project remained incomplete, the interest income was inextricably linked to capital formation rather than revenue generation. The characterization as capital receipt rendered the interest income non-taxable under income from other sources, ruling in favor of the assessee. en-us Wed, 25 Sep 2024 00:00:00 +0530 Thu, 17 Oct 2024 09:24:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760159 Kerala HC held that interest income earned by a company from short-term deposits of government funds allocated for project setup constitutes capital receipt, not revenue receipt. The court determined that since the funds and derived interest were mandatorily restricted for exclusive project use and the project remained incomplete, the interest income was inextricably linked to capital formation rather than revenue generation. The characterization as capital receipt rendered the interest income non-taxable under income from other sources, ruling in favor of the assessee. Case-Laws Income Tax Wed, 25 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760159