Interest recd on F.D when production not start.
This query is : Resolved
28 December 2008
Dear Sir,
My company incorporated in 2005 and start production in 2006 . During thid period whichever expences made , that's capitalised . and that time we had F.D with Bank , on which we received interest . This interest we shown to " Pre - operative Exps ( interest ) under current asset. it's wrong or right . can I get any Case law against said transaction ?
Please help
Vijay
Dear Sir,
My company incorporated in 2005 and start production in 2006 . During thid period whichever expences made , that's capitalised . and that time we had F.D with Bank , on which we received interest . This interest we shown to " Pre - operative Exps ( interest ) under current asset. it's wrong or right . can I get any Case law against said transaction ?
Please help
Vijay
28 December 2008
It is wrong based on the following decisions:-
1) Tuticorin Alkaali Chemical and fertilizersltd Vs.CIT (1997)227 ITR 172(SC).
2) Vijaya Laxmi
sugar Mills ltd Vs CIT (1991) 191 ITR 641(SC).
Accordingly, the interest should be offered for taxation under the head income From Other Sources.
1) Tuticorin Alkaali Chemical and fertilizersltd Vs.CIT (1997)227 ITR 172(SC).
2) Vijaya Laxmi
sugar Mills ltd Vs CIT (1991) 191 ITR 641(SC).
Accordingly, the interest should be offered for taxation under the head income From Other Sources.
28 December 2008
INCOME TO BE DECLARED & OFFERED AS INCOME FROM OTHER SOURCES
CASE LAWS AS GIVEN BY LEARNED SENIOR CA CHAKRAPANI ARE THERE FOR YOUR REFERENCE
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
CASE LAWS AS GIVEN BY LEARNED SENIOR CA CHAKRAPANI ARE THERE FOR YOUR REFERENCE
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- DIN reactivation
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- CREDIT NOTES WITHOUT GST
- Condonation . E-Verification of last year return .
- TDS Return Q1 FY 2026-27
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- TDS on Consultancy- Non DTAA
- Management System (IMS)
- Depreciation of fixed assets- coop housing society in mumbai
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
