https://www.taxtmi.com/caselaws?id=779079 ITAT MUMBAI (AT) directed deletion of the AO's addition of notional interest on interest-free mobilization and other advances given to the principal EPC contractor. The Tribunal accepted the CIT(A)'s factual findings that most advances were recovered during the project and the balance settled by a later date, and noted interest costs were capitalized into project cost and to be amortized over the concession period. As the income was not actually earned or accrued, the notional interest addition under section 37 could not be sustained. en-us Thu, 18 Sep 2025 00:00:00 +0530 Sat, 27 Sep 2025 08:34:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779079 ITAT MUMBAI (AT) directed deletion of the AO's addition of notional interest on interest-free mobilization and other advances given to the principal EPC contractor. The Tribunal accepted the CIT(A)'s factual findings that most advances were recovered during the project and the balance settled by a later date, and noted interest costs were capitalized into project cost and to be amortized over the concession period. As the income was not actually earned or accrued, the notional interest addition under section 37 could not be sustained. Case-Laws Income Tax Thu, 18 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779079