Interest Linked to Project Funds Is Capital Receipt & Not Taxable as other Income: Delhi HC

Indian Oil Panipat Power Consortium Limited Vs ITO (Delhi High Court) In Indian Oil Panipat Power Consortium Limited Vs ITO, the Delhi High Court adjudicated appeals filed under Section 260A of the Income Tax Act, 1961 against a Tribunal order concerning Assessment Years 2001–02 and 2002–03. The central issue was the tax treatment of interest earned on share capital that had been temporarily invested in fixed deposits pending acquisition of land for a proposed power project. The assessee, a joint venture between Indian Oil Corporation and Marubeni Corporation of Japan, was incorporated to ...