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TMI Blog2016 (8) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of unutilized revenue grant. 3. Briefly stated the facts of the case are that the assessee is engaged in the business of manufacturing of leather goods and furniture. Return for the year was filed on 14.10.2010 showing total income of Rs. 1,68,12,210/-. Subsequently, the return was revised on 21.10.2011 declaring total income of Rs. 2,78,24,610/-. The return was selected for scrutiny assessment and accordingly statutory noticed were issued and served upon the assessee. 4. During the course of the scrutiny assessment proceedings, the A.O. observed that revenue grants of Rs. 30,48,70,511/- were received from different authorities, During the year under consideration, and grant of Rs. 28,11,54,918/- was utilized during the year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unched by government and in particular to assist marketing of the products of Rural Industries of Gujarat & to provide technical and managerial assistance to rural artisans of various Districts of Gujarat. It was further explained that the entire share capital of corporation is held by government of Gujarat and its nominees. It was further brought to the notice of the First Appellate Authority that the decisions relied upon by the A.O cannot be applied on the facts of the case. Strong reliance was placed on the decision of the Tribunal Ahmedabad Bench in the case of Gujarat Safai Kamdar Vikas Nigam and also on the decision of the Hon'ble Jurisdictional High Court in the case of Gujarat Municipal Finance Board 221 ITR 317 (Guj.). 9. After c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom it. It cannot utilize or hold the grant for its own use or any other purpose. As far as the issue of parking with GSFS and earning interest thereon is concerned, it is difficult to point out what is the part of interest income attributable to the unutilized grant as parked funds are mixed and may include - a ) Surplus own Funds including cash accruals (b) Surplus Working Capital Funds and (c) Grant amount pending utilization thereof Further, even if it can be said that some interest has been earned by parking these funds for some time, it cannot be said that the appellant had control over the entire funds or can keep them unutilized for indefinite or unusually long periods; particularly seeing to the fact that it is a government owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability of the assessee company has been accepted by the Statutory Auditors of the assessee company as well as by the Comptroller & Auditor General of India in their audit reports. Thus, there was no question of adding the amount to the income of the assessee, who is merely a Nodal Agency to implement certain social beneficiary schemes of the Government. In that view of the matter we hold that the grant of Rs. 8.97 crores received from the Government of Gujarat by the assessee be treated as not includible in the income of the assessee and is exempt u/s.ll(l)(d) read with section 12(1) of the Act. Ground No.2 of the appeal is allowed." Further, Hon'ble lTAT in the case of Gujarat State Disaster Management Authority vs. ACIT, Gandhin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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