TMI Blog2014 (3) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... n the fixed deposit of ₹ 16.70 crore which was the grant received by the assessee from the Central Government cannot be said to be its income - as per the condition of release of grant, the interest earned on the Central Government grant ie., ₹ 21,22,253 in the present case is to be included as a part of the grant received from the Central Government – there is no error has been committed by the Tribunal in deleting the addition of ₹ 21,22,253 made by the Assessing Officer, treating it as the income of the assessee – there is no substantial question of law arises for consideration – Decided against Revenue. - Tax Appeal No.828 And 855 of 2013 - - - Dated:- 3-10-2013 - M.R. SHAH AND MS. SONIA GOKANI, JJ. For the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Government and which sum was invested in the fixed deposit and the interest earned on the said fixed deposit can be said to be income as the assessee itself claimed refund of TDS deducted on the interest earned on the aforesaid fixed deposit. That thereafter, the Assessing Officer passed the assessment order making addition of Rs. 21,22,153/=; being the interest received from Bank of India on the fixed deposit of Rs. 16.70 crore, which the assessee received from the Central Government by way of grant. 3.2 Being aggrieved and dissatisfied with the order passed by the Assessing Officer making addition of Rs. 21,22,153/= in the total income of the assessee, the assessee preferred an appeal before the CIT [A] and by an order dated 23rd No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bank of India as fixed deposit and earned interest of Rs. 21,22,253/=. It appears that the Bank of India deducted TDS of Rs. 4,32,939/= on the said interest amount. The assessee claimed refund of Rs. 4,32,939/=, being the TDS deducted on the aforesaid amount of Rs. 21,22,253/= treating it as income, which prompted the Assessing Officer to initiate proceedings and issuance of notice under section 148 of the Act. The Assessing Officer treated the aforesaid amount of Rs. 21,22,253/= received by the assessee by way of interest on the fixed deposit of Rs. 16.70 crore as income of the assessee and made addition of Rs. 21,22,253/= in the income of the assessee. The said order came to be confirmed by the CIT [A]. On appeal, the Tribunal by impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has committed an error in not treating the amount of interest earned on the grant as income of the assessee. The aforesaid contention has no substance. What is important is whether the interest earned on the Central Government grant is to be treated as the income earned or not, and not what the assessee claimed. As stated hereinabove, in the letter of the Central Government releasing the grant, which provides a condition that the interest earned on the central grant already released would form part of the central grant limit of Rs. 50 crore, the amount of Rs. 21,22,253/= being interest earned on the fixed deposit of Rs. 16.70 crore which was the grant received by the assessee from the Central Government cannot be said to be its income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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