Interest on bank deposits when project is being setup is a capital receipt: POSCO India case

Advocate Akhilesh Kumar Sah Taxability of income earned by an assessee during the period when the project was not complete and business had not commenced has remained a debatable point in many cases. Recently, in ACIT vs. POSCO India Pvt. Ltd. and vice-versa [ITA No.155 & 122/CTK/2017, decided on 15.02.2018], the only common issue taken by the revenue in both the appeals was that the CIT(A) erred in deleting addition of interest income of Rs.1,73,30,736/- for the assessment year 2010-2011 and Rs.13,64,57,044/- for the assessment year 2012-13 holding that such interest on FDs cannot be tax...