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2018 (7) TMI 2216 - AT - Income TaxApplicability of MAT applicability u/s 115JB - company engaged in the generation and supply of electricity power - HELD THAT:- Identical issue had come up for consideration in the assessee’s own case for the AY 2010-11 [2017 (12) TMI 1631 - ITAT BANGALORE] and this Tribunal by its order upheld the order of CIT(Appeals) in coming to the conclusion that the provisions of section 115JB of the Act are not applicable to assessee company because it was a company engaged in generation and supply of electricity power. As far as amendment to provisions of section 115JB(2) of the Act w.e.f. 01.04.2013 is concerned, this issue has also been dealt with by the Tribunal in assessee’s own case for AY 2010-11 by placing reliance on a similar decision rendered on the very same amendment to law in the case of Karnataka Power Corporation Ltd. v. ACIT [2013 (10) TMI 1505 - ITAT BANGALORE] wherein the Tribunal took the view that amendment to law w.e.f. 01.04.2013 was only prospective. In view of the order of Tribunal on an identical issue in assessee’s own case, we are of the view that there is no merit in this appeal by the revenue and the same is dismissed. Interest earned from fixed deposits has to be regarded as business income on which deduction u/s. u/s.80IA[4][iv] or the same should be treated as income from ‘other sources’ - HELD THAT:- This aspect was also considered by the Tribunal in assessee’s own case in AY 2010-11 [2017 (12) TMI 1631 - ITAT BANGALORE] wherever the FDRs are purchased on account of business exigencies, the interest generated thereon would be business income and not income from other sources. But in the instant case, it is not borne out from the orders of lower authorities whether all FDRs are purchased for business exigencies or not. Therefore, we restore the matter to the file of the AO to examine the nature of FDRs and its purpose and to give a specific finding whether the FDRs were purchased for business purposes or not. If it is purchased for business purposes, the interest income earned thereon shall be treated as business income, not income from other sources.
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