Interest on idle funds mainly brought for capital expansion can be set off against pre-operative expenses

Brief of the Case Delhi High Court held In the case of Principal CIT vs. Facor Power Ltd. that no substantial question of law arises for our consideration. This is so because, the Tribunal has correctly placed reliance on the decision of this Court in Indian Oil Panipat Power Consortium Limited [2009 315 ITR 255 (DEL). The facts in that case were quite similar. In this case, the Division Bench considered the decisions of the Supreme Court in Tuticorin Alkali Chemicals and Fertilizers Ltd. (1997) 227 ITR 172 (SC) and CIT v. Bokaro Steel Limited: (1999) 236 ITR 315 and held that the funds in th...