TMI Blog2015 (9) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... to whom moneys have become refundable by reason of delay in making the refund will belong to the company, only when the trust terminates and it is only at that point of time, it can be stated that amount has accrued to the company as its income. It is not in dispute that in the year 1993-1994, the assessee had shown the income on account of interest received in the income tax returns and paid the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this issue was 03.02.1992. Proceeds which were received from the applicants to the share capital were deposited in the Bank in 46 days as per the requirement under law. The shares were ultimately allotted in June, 1992. Those who were not allotted the shares, their application money was refunded along with interest. As mentioned above, the proceeds which were collected from the intending subscrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that after certain amount was refunded, which included interest to those whose application money was returned, the actual amount which was left became the income and, therefore, this income accrued only in the year 1993-1994. The aforesaid contention of the assessee has been accepted by the High Court in the following manner: - 17. The company is not, under section 73, required to ke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed having regard to the length of period of delay in the return of money to them. 18. It is only after the allotment process if completed and all moneys payable to those to whom moneys are refundable are refunded together with interest wherever interest becomes payable, the balance remaining from and out of the interest earned on the application money can be regarded as belonging to the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill belong to the company, only when the trust terminates and it is only at that point of time, it can be stated that amount has accrued to the company as its income. It is not in dispute that in the year 1993-1994, the assessee had shown the income on account of interest received in the income tax returns and paid the tax thereupon. We, thus, do not find any error in the order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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