Interest on FD from Borrowed Funds During Construction Is Capital, Not Taxable: ITAT Mumbai

ACIT Vs Chenani Nashri Tunnelway Ltd (ITAT Mumbai)

Interest on FDs to Reduce Project Cost – No Tax on Interest During Construction – ITAT Upholds Capitalization Against CWIP

ITAT Mumbai dismissed Revenue’s appeal & upheld CIT(A)’s order allowing capitalization of interest earned on short-term fixed deposits out of borrowed funds. Tribunal held that such interest income was inextricably linked with the highway project under construction & therefore required to be reduced from capital work-in-progress (CWIP) instead of being taxed under “

Please become a Premium member. If you are already a Premium member, login here to access the full content.