TMI Blog2006 (11) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 15,000 sq.mts. to 8,000 sq.mts. and claimed interest on the excess amount deposited by it with the IHC. The governing council of the IHC, however, declined to pay any interest on the excess amount deposited by the assessee. - The fact that it treated interest as receivable on the surplus payments made to the IHC in its books of account is not conclusive that chargeable interest had accrued to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IHC on a no profit no loss basis. It is common ground that the assessee had originally applied for allotment of 15,000 sq.mts. of covered area in the building to be constructed by the IHC and deposited the amount demanded by the IHC accordingly. The assessee subsequently reduced its claim for the constructed area from 15,000 sq.mts. to 8,000 sq.mts. and claimed interest on the excess amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's account for the financial year 1995-96, no interest had actually accrued which could be brought to tax under the provisions of the Interest Act. The above view has been affirmed by the Tribunal in the order under appeal before us. The Tribunal's reasoning is summed up in the following words: "We have considered the rival submissions. We do not find any ground to interfere with the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the parties have agreed that no interest is payable. The Commissioner of Income-tax (Appeals) has rightly come to the conclusion that no interest has accrued to the assessee, by taking note of the subsequent events. We, therefore, dismiss this appeal by the Revenue." There is, in our view, no error of law or jurisdiction in the view taken by the Commissioner of Income-tax (Appeals) or the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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