No Tax on Interest Income inextricably linked with setting up of power plant

ITO Vs Nabinagar Power Generating Co. Pvt. Ltd. (ITAT Delhi)

No addition on account of interest income as same was inextricably linked with setting up of power plant and to be capitalized

Conclusion: Since the work of construction of the power plant was under progress, interest incomes are also inextricably linked with the setting up of the power plant and such incomes have gone on to reduce the expenses for setting up of the plant and as there was no surplus funds available with the

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