Interest on FD received at pre-operative stage is capital receipt

Solarfield Energy Pvt Ltd Vs ITO (ITAT Mumbai) Conclusion: Interest income generated during pre-operative period was correctly reduced by assessee-company from WIP  as the same was inextricably linked with the power project and would be considered as capital receipt. Held: During the assessment, AO noted that assessee had reduced interest on fixed deposits from WIP. AO made addition of the same. Assessee filed its detailed reply and stated that the amount was earned during the testing period and was not taxable as income and had been correctly reduced from WIP. It was held if the funds were ...