https://www.taxtmi.com/highlights?id=98930 Interest earned on fixed deposits kept only to furnish a bank guarantee for the project was held to have an inextricable nexus with the project and, therefore, had to be capitalised to work-in-progress rather than taxed as income from other sources. The Tribunal found the deposits were not a deployment of surplus funds, the bank guarantee remained in force during the relevant year, and the project had not finally ceased because cancellation was still under challenge. On that basis, it applied the project-linked receipt principle and distinguished Tuticorin Alkali, deleting the addition. en-us Sat, 18 Apr 2026 08:55:16 +0530 Sat, 18 Apr 2026 08:55:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=98930 Interest earned on fixed deposits kept only to furnish a bank guarantee for the project was held to have an inextricable nexus with the project and, therefore, had to be capitalised to work-in-progress rather than taxed as income from other sources. The Tribunal found the deposits were not a deployment of surplus funds, the bank guarantee remained in force during the relevant year, and the project had not finally ceased because cancellation was still under challenge. On that basis, it applied the project-linked receipt principle and distinguished Tuticorin Alkali, deleting the addition. Highlights Income Tax Sat, 18 Apr 2026 08:55:16 +0530 https://www.taxtmi.com/highlights?id=98930