My company incorporated in 2005 and start production in 2006 . During thid period whichever expences made , that's capitalised . and that time we had F.D with Bank , on which we received interest . This interest we shown to " Pre - operative Exps ( interest ) under current asset. it's wrong or right . can I get any Case law against said transaction ?
28 December 2008
It is wrong based on the following decisions:- 1) Tuticorin Alkaali Chemical and fertilizersltd Vs.CIT (1997)227 ITR 172(SC). 2) Vijaya Laxmi sugar Mills ltd Vs CIT (1991) 191 ITR 641(SC). Accordingly, the interest should be offered for taxation under the head income From Other Sources.
28 December 2008
INCOME TO BE DECLARED & OFFERED AS INCOME FROM OTHER SOURCES CASE LAWS AS GIVEN BY LEARNED SENIOR CA CHAKRAPANI ARE THERE FOR YOUR REFERENCE
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