Forfeited Earnest Money from Contractors Classified as Capital Receipt, Reducing Project Costs Before Operations Begin.

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....Characterization of income - forfeiture of earnest money from the contractors, forfeited and appropriated by the assessee - The commercial operations of the power plant has not yet commenced during the impugned ay and the project was under implementation. Thus, the receipts are inextricably linked to the project - to be treated as capital receipt which will go on to reduce cost of project - AT....