TMI Blog2019 (1) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... the view of the Tribunal. As noted, the assessee was under directives of the Government of India to collect and create decommissioning reserves which would be utilized for decommissioning of the plant at the end of its useful life. The amount so collected from the customers would be in the possession of the assessee and would be utilized for the purpose of its business. The Government of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2018 raising following question for our consideration:- Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in allowing deduction of ₹ 3,31,73,000/- being interest credited to decommissioning Reserve fund ignoring the fact that the Reserve was meant and used for the business of the assessee? 2. Respondent - assessee is Nuclear Power Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India allows the assessee to collect decommissioning costs from its customers which at the relevant time was fixed at 1.25 paisa to 2 paisa per kwh. Under another notification issued by the Department of Atomic Energy, the assessee had to account for 12% interest on such decommissioning charges collected by it. During the year under consideration, the assessee had decommissioning reserve of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erves. The Tribunal noted that the funds do not belong to the assessee but the same were used for the purpose of business and the assessee paid interest to the funds at the instance of the Department of Atomic Energy. The Tribunal held that such interest cannot be said to be notional interest and the expenditure was rightly claimed by the assessee by way of deduction. 5. Having heard the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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