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TMI Blog2012 (2) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... ri. G. Kamaladhar, ADV. For the Respondent : Sri. K P Kumar, Sr Counsel for M/s king & Patridge JUDGEMENT This appeal was admitted to consider the following substantial question of law as set out in the memorandum of appeal, which reads as under. "a) Whether the Tribunal was correct in holding that the requirement of obtaining the prior approval of the central government under Section 36(1)(B) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from tax as it is capital in nature. Further, the Assessing Officer found that the assessee had earned the amount out of excess fund held by it. It was the claim of the assessee that these funds have been received by way of grants and since the same had not been utilized it was parked in fixed deposits and the same was earning interest. The Assessing Officer held that it was the business activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h special reserve created and maintained by a financial corporation which is engaged in providing long Term finance for industrial or agricultural development or development of infrastructure facility in India. However, prior to 01.04.2000 the proviso to the said provision provided that the corporation or, as the case may be, the company for the time being approved by the Central Government for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CBDT has not rejected the application of the assessee. Having regard to the object with which such provision is enacted and subsequently whereby this technically of obtaining prior approval is given a go by, it was of the view that the assessee is entitled to the benefit of deduction. If we take the substance of the said section and not format in which it is shown, the said provision was enact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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