https://www.taxtmi.com/caselaws?id=779081 ITAT PANAJI - AT held that interest earned on fixed deposits maintained to secure bank guarantees for import of capital goods under the EPCG scheme is incidental to capital expenditure and may be set off against pre-operative/project expenses. The Tribunal found a direct nexus between the deposits and purchase of capital goods, overturned the AO's view treating the interest as income from other sources, and directed the AO to delete the addition and allow the set-off. en-us Mon, 22 Sep 2025 00:00:00 +0530 Sat, 27 Sep 2025 08:34:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779081 ITAT PANAJI - AT held that interest earned on fixed deposits maintained to secure bank guarantees for import of capital goods under the EPCG scheme is incidental to capital expenditure and may be set off against pre-operative/project expenses. The Tribunal found a direct nexus between the deposits and purchase of capital goods, overturned the AO's view treating the interest as income from other sources, and directed the AO to delete the addition and allow the set-off. Case-Laws Income Tax Mon, 22 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779081