Interest on Non-Surplus Funds Not Taxable as Income from Other Sources: Delhi HC

PCIT Vs International Coal Ventures Pvt. Ltd. (Delhi High Court) The case before the Delhi High Court involved an appeal by the Revenue challenging an order of the Income Tax Appellate Tribunal (ITAT), which had allowed the assessee’s appeal for Assessment Year 2012–13. The dispute centered on whether interest earned on funds placed in short-term deposits during the pre-commencement phase of business was taxable as “income from other sources” under Section 56 of the Income Tax Act, 1961. The assessee, a joint venture company formed by public sector undertakings, was established to acqu...