https://www.taxtmi.com/caselaws?id=763638 Delhi HC held that interest income earned on funds temporarily deposited in fixed deposits during coal mine acquisition process constitutes part of capital cost, not taxable income under "other sources." The court distinguished between funds earmarked for specific capital asset acquisition requiring time for construction/development versus off-the-shelf purchases. Since the assessee's funds were specifically called for coal mine acquisition and temporarily held pending payment, the interest earned should be credited to Capital Work in Progress (CWIP) as part of capital costs. The court clarified these were not surplus funds but earmarked capital, ruling in favor of the assessee. en-us Fri, 20 Dec 2024 00:00:00 +0530 Tue, 24 Dec 2024 08:28:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763638 Delhi HC held that interest income earned on funds temporarily deposited in fixed deposits during coal mine acquisition process constitutes part of capital cost, not taxable income under "other sources." The court distinguished between funds earmarked for specific capital asset acquisition requiring time for construction/development versus off-the-shelf purchases. Since the assessee's funds were specifically called for coal mine acquisition and temporarily held pending payment, the interest earned should be credited to Capital Work in Progress (CWIP) as part of capital costs. The court clarified these were not surplus funds but earmarked capital, ruling in favor of the assessee. Case-Laws Income Tax Fri, 20 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763638