Taxability of Pre-Commencement Interest: ITAT Delhi restores case to CIT(A)

ACIT Vs MB Power (Madhya Pradesh) Ltd. (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi, recently heard an appeal by the Revenue concerning the taxability of interest income earned by MB Power (Madhya Pradesh) Ltd. during the pre-commencement phase of its business operations for the assessment year 2016-17. The Revenue challenged the Commissioner of Income Tax (Appeals)’s (CIT(A)) order, which had held that the interest income was not taxable under Section 56 of the Income Tax Act. The Revenue argued that the CIT(A) had erred in overlooking established judicial precedents, specif...