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Informative

Sugar Company Claims ₹1,445 Lakh Interest On FDs Against Pre-operative Expenses; ITAT Allows Set Off

Update / Judgement Date

08 Oct 2025

Source

Taxscan

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

1 min read

Income Tax

A sugar company claimed interest income (₹1,445 lakh) from fixed deposits and sought to set it off against pre-operative expenses. The ITAT allowed such set-off, considering the nature of income and business connection. The article discusses principles of classification of income, allowable set-offs under the Income Tax Act, and the tribunal’s reasoning in aligning interest and business nexus.