Pre-Production FD Interest Not Taxable: ITAT Deletes ₹14.45 Lakh Addition

Shirguppi Sugar Works Limited Vs ITO (ITAT Panaji) Interest During Pre-Production Not “Other Sources” – Tribunal Deletes Addition- FDs Linked to Project Finance – ITAT Allows Set Off Against Capital Cost Assessee, engaged in integrated sugar mill, co-generation plant & distillery unit, filed return for AY 2012-13 declaring NIL income. During scrutiny, AO noticed interest of ₹14,45,670 earned on fixed deposits placed with banks, which was claimed set off against pre-operative expenses. AO held that since the income was earned during pre-production stage, it was taxable as “incom...