9911796707
TMI Blog2014 (12) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the ITAT was right in holding that interest income on the share application money deposited in the bank amounting to Rs. 1,12,801/- was the income accrued to the appellant during the previous year relevant to the assessment year under consideration ?" 3. The facts in brief are that the assesseecompany got Certificate of Incorporation on 23rd November, 1993. During the previous year relevant to Assessment Year 199596 the assessee company invited share application money for allotment of some share at premium. The total amount received by the assessee on account of share application money was Rs. 1,27,93,600/-. The assessee kept the amount in bank. Return of income for 199596 was furnished on 30.11.1995 declaring nil income. Du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Commissioner of Income Tax-IV Vs. Shree Rama Multi Tech Ltd., reported in [2013] 32 taxmann. Com 296 (Gujarat) as well as unreported decision of this court rendered in Tax Appeal No.315 of 2010 decided on 26.07.2011. 5. We have heard learned advocates for both the parties and perused the material on record. While deciding the Appeal, the Tribunal in paragraph Nos.10 to 14 of its order observed as under: 10. Once it is held that the share application money received by the assessee was for all intents and purposes, except the prohibition put by the provision of section 69 of the Companies Act, the assessee's money, the natural corollary follows that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ep at the office or at such other place in India as the Board think fit, proper Books of Account in accordance with section 209 of the act with respect to (a) All sums of money received and expended by the company and the matters in respect of which the receipts and expenditure take place (b) All sales and purchases of goods by the company (c) The assets and liabilities of the company. There the Board decides to keep all or any of the books of account at any place other than the office of the Company, the Company shall within seven days of the decision file with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence to the contrary except the claim the interest was offered for taxation in the AY 1996-97. 13. In view of the above provision of companies Act, assessee's plea that it was maintaining cash accounting system also do not holdgood and the same is rejected. 14. In view of the above discussions and totality of the facts and circumstances of the case, I am of the opinion that interest accrued on Fixed Deposits upto 31.3.95 was legally assessable in the hands of the assessee company in AY 1995-96 and AO was quite justified in assessing the same on accrual basis in AY 1995-96. The order of the CIT(A) is therefore, set a side and that of the AO is restored. 6. In view of the above, we are in complete agreement with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
