TaxTMI 
TaxTMI 
2014 (4) TMI 559
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....the order of the ITAT dated 26.07.2013 rejecting its appeal and urges the following substantial question of law: - "Whether the interest earned by the assessee on the margin money deposited by it for borrowing amounts to finance its expansion i.e. setting-up of 9th Boiler Project for generation of power was capital in nature' The brief facts are that in respect of AY 2009-10 the assessing....
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....t the interest is in the nature ofa capital receipt liable to be set off against pre-operative expenses, is acceptable, since the funds infused in the assessee company by the joint venture partners are inextricably linked with the setting up of the plant and the interest earned cannot be treated as income from other sources. ''Indian Oil Panipat Power Consortium Ltd.'' (supra) is squarely applicab....
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....l these facts have been duly taken into consideration by the CIT(A) while passing the order under appeal. Therefore, there is no merit in the grievance raised by the department by way of ground nos. 1 and 2. Accordingly, ground nos. 1 and 2 are rejected''. It is further seen that the jurisdictional High Court of Delhi in the case of CIT vs. Shree Ram Honda Power Equipment 289 I....
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....f interest, and the Tribunal erred in placing reliance on CIT vs. Sasan Power Ltd., (ITA No.10/2012, dated 06.01.2012). Learned counsel for the assessee, however, urges that the impugned order does not require to be interfered with inasmuch as it has taken note of a decision of this Court in CIT vs. Sasan Power Ltd., where this question has been decided. It is urged that in that decision the Court....