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2014 (10) TMI 942 - AT - Income TaxAccrual of income - Interest income - income out of the investment made out of balance of UI charges which belonged to WBERC which was a Commission formed by the Government - Held that:- This Interest did not belong to the assessee nor it was an income in the hands of SLDC and the said income should not be considered in the assessment of the assessee. It is a fact that the Income arising out of the Investments made out of the Balance of UI charges, actually belonged to WBERC which was a Commission formed by the Government and consequently such interest being the income of the Government, there should not arise any taxability thereof. The moneys lying in the UI account always belonged to the Government, viz. under the name of WBERC. It was only for the convenience in the matter of making investment in deposits of UI balances that the PAN of the assessee had been utilized. However, just because of utilization of PAN resulting in showing the TDS in Form No.26AS, could not be considered as any alleged income in the hands of the assessee. The Assessing Officer was repeatedly requested by the assessee to go through the relevant documents explaining how UI charges were being recovered, utilisation of UI charges and investments required to be made. This interest income of ₹ 3,46,97, 166/- belongs to WBERC and not of the assessee. - Decided in favour of assessee. MAT computation - Held that:- As this interest income does not belong to the assessee. Hence, this issue has become academic and in the hands of the assessee, this income cannot be added while computing the income u/s.115JB of the Act. This issue of the Revenue's appeal is dismissed.
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