Please suggest reference of case laws involving below mentioned issue:-
A Private limited company borrowed some money for capital expenditure. It invested unutilized funds in Fixed deposits and reduced the interest income from CWIP on assumption that it is income from funds borrowed for capital expenditure. Is company correct in its treatment or the income is chargeable to tax.
04 November 2015
Thank you sir, But according to company it is a preoperative income, like interest expenditure is capitalized before the asset is put to use, in the same manner why interest income from that borrowed fund for asset cant be capitalized.