Interest Income is capital receipt only if it is inextricably linked with project

Issue under Consideration Common appeal is raised by the revenue against the order of CIT (A) relating to assessment year 2007-08, 2008-09 & 2009-10 as CIT (A) deleted the addition of Rs. 17, 28, 644/- without considering the fact that Interest expenditure cannot be allowed as deduction against the interest income during the construction period. Brief of the case In the Case of ACIT vs. Z Square Shopping Mall Private Limited, ITAT Lucknow held that the interest earned on FDR, Gains from investment of Mutual Fund is not inextricably linked or connected with the construction activities, The...