2015 (1) TMI 45

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....N Shastri, CA and Shri M P Rastogi, Adv JUDGEMENT ORDER Per : G D Agrawal, VP : This appeal by the Revenue is directed against the order of learned CIT(A)-VI, New Delhi dated 15th October, 2012 for the AY 2009-10. 2. The Revenue has raised the following grounds:-     "1. The ld.CIT(A) has erred in law and on facts in deleting addition of Rs. 1,99,42,000/- made on a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....milar issue was decided in the case of CIT Vs. Sasan Power Ltd. on 6 January, 2012 (ITA 10/2012) by the Hon'ble High Court of Delhi as follows:-         "11. In "Indian Oil Panipat Power Consortium Ltd." (supra), it has been held that where interest is on money received as share capital, which is temporarily placed in fixed deposit awaiting acquisition of land....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....l receipt not liable to tax and going to reduce the cost of the project. In the present case too, the funds infused by the assessee company were inextricably linked with the setting up of the power plant. Likewise, the interest payment was also capital expenditure, which fact was confirmed by the AO, while observing the entire income of the entire expenditure was capital in nature.   ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he netting off of interest before determining the business profit of the appellant company." 4. From the above, it is evident that the learned CIT(A) allowed the relief following the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Sasan Power Ltd. vide ITA No.10/2012 and Shree Ram Honda Power Equipment - 289 ITR 475. The Revenue has not disputed the applicability of the....