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2019 (10) TMI 146 - AT - Income TaxDisallowance on account of Guarantee Fee on Bonds - Interest on FDR made out of un-utilised funds provided by COP & CCS (Govt Organization) - HELD THAT:- It is well settled Law that addition shall have to be made in assessment year to which it pertain. May be assessee has wrongly offered the impugned amount for taxation in subsequent A.Y. 2013-2014 would not absolve the assessee from its liability to pay tax in assessment year under appeal. Assessee earned interest of the impugned amount against the FDRs which were made out of the funds which remain un-utilised. Therefore, the principal amount remain with the assessee which is to be utilised by the assessee of its own. If interest is earned on the same and certified by the Statutory Auditor that it is income of the assessee, it has to be shown as income in assessment year under appeal only. Merely because assessee has shown the impugned amount as taxable in A.Y. 2013-2014 would be of no consequence. No justification to interfere with the Orders of the authorities below. Assessee was directed to produce the policy of the Government of India through which the amount have been given to assessee and the conditions stipulated therein to refund back the amount along with interest so as to clarify the position taken by the assessee before the authorities below. However, Learned Counsel for the Assessee has shown his inability to produce any such policy or circular for consideration of the Bench. In these circumstances, it is clear that interest earned on FDRs was income of the assessee from other sources as is held by the authorities below, which was ultimately agreed by the assessee to be surrendered for taxation though in subsequent year. No interference is called for in the matter. We, accordingly, dismiss the appeal of assessee.
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