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2021 (5) TMI 470 - AT - Income TaxInterest income assessed under the head income from other sources - assessee has reduced interest earned on temporary fixed deposits with bank from work in progress on the ground that funds parked in temporary fixed deposits is having inextricable link with project of setting up of manufacturing facility and consequently, same cannot be assessed under the head income from other sources - plea of the assessee is that although, assessee has filed various evidences before learned CIT(A) in light of certain judicial precedents to prove nexus between funds parked with fixed deposits and interest income earned from fixed deposits, but learned CIT(A) has not considered any evidences filed by assessee - HELD THAT:- We find that learned CIT(A) has simply upheld order passed by Assessing Officer by following judgement M/s. Tuticorin Alkali Chemicals & Fertilizers Ltd1997 (7) TMI 4 - SUPREME COURT] even though assessee has cited subsequent decision of CIT Vs. M/s. Bokaro Steel Ltd.[1998 (12) TMI 4 - SUPREME COURT] and Indian Oil Panipat Power Consortium Ltd. [2009 (2) TMI 32 - DELHI HIGH COURT] where courts after considering decision of M/s. Tuticorin Alkali Chemicals & Fertilizers Ltd (supra), held that if funds kept in fixed deposits is having inextricable link with project, then interest earned on short term deposits should be reduced from work in progress, but cannot be assessed under the head income from other sources. Although, assessee has cited those judgements, learned CIT(A) has not considered judgements cited by assessee before deciding the issue. Issue needs to go back to the file of learned CIT(A) to decide the issue in light of various evidences filed by assessee including decision of Hon’ble Supreme Court in the case of M/s.Bokaro Steel Ltd. Hence, we set aside the issue to the file of learned CIT(A) to decide the issue afresh in accordance with law. Appeal filed by assessee is treated as allowed for statistical purposes.
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