M/S CMDC ICPL COAL LIMITED,RAIPUR (CG) vs. THE INCOME TAX OFFICER, 3(1), RAIPUR (CG)

ITA 348/BIL/2016Status: DisposedITAT Raipur09 May 2022AY 2009-1030 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest earned on share capital temporarily parked in banks before commencement of business is a capital receipt and should be set off against pre-operative expenses, not taxed as income from other sources.

What were the facts?

The assessee, a joint venture, earned interest on funds temporarily parked in banks before commencing commercial operations. The Assessing Officer reopened the assessment to tax this interest income as revenue, which the assessee claimed as a capital receipt to be set off against pre-operative expenses.

What were the issues?

Whether interest earned on temporary funds before business commencement is a revenue receipt or a capital receipt, and if reopening of assessment was valid.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 139,Section 142(1)

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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI RAVISH SOOD & SHRI JAMLAPPA D BATTULL

For Appellant: Shri R.B Doshi, CA
For Respondent: Shri G.N Singh, DR
Hearing: 10.02.2022Pronounced: 09.05.2022

PER RAVISH SOOD, JM: The captioned appeals filed by the assessee are directed against the common order passed by the CIT(Appeals)-1, Raipur dated 08.07.2016, which in turn arises from the respective orders passed by the A.O under Sec. 143(3)/147 of the Income-tax Act, 1961 (in short ‘the Act’) for assessment years 2009-10, 2010- 11 & 2012-13. As common issues are involved in the captioned appeals, therefore, the same are being taken up and disposed off by way of a consolidat

The order continues below.

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