TMI Blog2006 (2) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... e bank deposits cannot be treated as an income of the assessee as the interest is earned out of the money given by the Government of India for the purpose of implementation of the mega city scheme - we do not find any error in the conclusion reached by the Tribunal that there was no income earned by way of interest by the assessee - finding given by the Tribunal is purely a question of fact. We do not find any substantial question of law involved in this appeal and therefore this appeal is liable to be dismissed at the stage of admission itself. - - - - - Dated:- 21-2-2006 - Judge(s) : P. VISHWANATHA SHETTY., N. KUMAR. JUDGMENT The judgment of the court was delivered by N. Kumar J.-The Revenue has preferred this appeal against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure apart from the activity as a nodal agency for the implementation of the mega city scheme undertaken by the Government of India. The interest earned and received by the assessee out of the amount which it had received from the Central and State Governments and deposited in various banks, was treated as an income of the assessee and the Assessing Officer brought the aforesaid amounts to tax. The assessee preferred an appeal and the said appeal came to be dismissed affirming the order of the Assessing Officer. Aggrieved by the same, the assessee preferred a second appeal to the Tribunal. The Tribunal looked into the guidelines which provided the background of the scheme. The Tribunal also looked into the terms of the scheme. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of which finance could be provided to various agencies such as water, sewerage boards, municipal corporations, etc. The objective is to create and maintain a fund for the development of infrastructural assets on a continuing basis and therefore the assessee is a nodal agency formed/created by the Government of Karnataka as per the guidelines; there is no profit motive as the entire fund entrusted and the interest accrued therefrom on deposits in bank though in the name of the assessee has to be applied only for the purpose of welfare of the nation/States as provided in the guidelines; the whole of the fund belongs to the State Exchequer and the assessee has to channelise them to the objects of the Centrally sponsored scheme of infrastruc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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