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2023 (11) TMI 403 - ITAT DELHIAccrual of income - Taxability of income - interest income generated on the funds received from Gol - ownership of Interest earned - as per revenue assessee has not included the same in its ITR as income from interest as per provision of section 194A - AO made addition of the interest in the hands of the assessee treating it as the income from other sources u/s. 56 - HELD THAT:- As decided in Handicrafts Development Corporation [2020 (5) TMI 410 - ITAT DELHI] when an assessee collects certain income on behalf of Government and remits the income back to the government and TDS is deducted in the name of assessee then in all practical purposes income collected by the assessee is its income in hands of the assessee and the rent paid back to the Government is its expenses and the TDS credit/refund will be provided to the assessee in whose name TDS has been deducted. Hence, in this situation also there would be no income chargeable to tax. As relying on DELHI STATE INDUSTRIAL DEVELOPMENT [2007 (4) TMI 150 - HIGH COURT, DELHI] CIT(A) held that the interest income generated on funds owned by Gol is not an income in the hands of the appellant company but it is the income of Gol and accordingly it is not required to be taxed in the hands of the Appellant Company. Therefore, the ld. CIT(A) held that the action of the AO treating the interest income in the hands of the appellant is not sustainable on the facts of the case as well as the law. Before us, as submitted the “Entire interest earned” has already been deposited in to the consolidated fund of India by way of challans. Since the entire amounts received as interest stands deposited in the consolidated fund of India, we hold that no addition is called for in the hands of the assessee. For the limited purpose of reconciliation of the interest earned and deposited in the CFI, we direct the assessee to furnish the entire details of receipt of interest income earned, TDS deducted and the total amounts deposited in CFI before the AO in a consolidated statement, which the AO shall verify and accord the benefit. Appeals of the Revenue are dismissed.
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