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2012 (12) TMI 122 - AT - Income TaxAccrual of interest on FDR - Revocation of bank Guarantee - held that:- The argument that FDRs were under lien against the Bank Guarantee does not help the assessee, the assessee could offer it for lien only because the assessee’s ownership was unfettered.- Assets whose ownership is questionable cannot be offered as lien. Even after offering them as lien the ownership is not transferred and assessee’s ownership continues to be undisturbed till the occurring of the event by virtue of which the ownership passes to the party who has a lien in its favour which event has occurred on 16.12.2000 when the bank guarantee was invoked. The arguments that assessee was under a bonafide belief that maintaining FDRs from these funds and holding them as lien for the State of Bihar in terms of the requirements of the Agreement does not impact the taxability of the amount; Ignorance of law in tax matters cannot be accepted. Application of income - condonation of delay - appellant’s plea for deemed application of funds u/s 11(2) for accumulation of Rs. 3.60 crores - held that:- delay is condonable in certain circumstances - However on facts it is seen that no such application has been filed by the assessee for condoning the delay before the Commissioner. As such the occasion to consider and thereafter accept/reject the same did not arise. Decided against the assessee.
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