Tax on interest on Security deposit with government linked with construction of Power Plant

Jhabua Power Limited Vs DCIT (ITAT Kolkata)

It is observed that the construction of Power Plant of the assessee-company was under progress during the year under consideration and in connection with the same, security deposit was required to be kept by the assessee to Commercial Tax Officer for sales-tax registration as well as with Executive Engineer for supply of water. The said deposits thus were inextricably linked with the construction of Power Plant of the assessee and as held by the Hon’ble Delhi High

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