FD Interest Income not Taxable till determination of ownership of FDs

PCIT Vs Rajdarbar Heritage Venture Ltd. (Formerly Known As Global Heritage Venture Ltd.) (Delhi High Court)

High Court held that till the final award was passed by the Arbitral Tribunal determining the ownership of the fixed deposits (FDS) and interest, it could not be said that the interest income had crystallized in the respondent’s hands and the same cannot be held to be income of the respondent-assessee under Section 5(1) of the Income Tax Act, 1961 (‘the Act’).

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

CM APPL.43152/2022 in ITA 376/2022 (Exemption)

CM APPL.43154/2022 in ITA 377/2022 (Exemption)

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