TMI Blog2019 (10) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee which is to be utilised by the assessee of its own. If interest is earned on the same and certified by the Statutory Auditor that it is income of the assessee, it has to be shown as income in assessment year under appeal only. Merely because assessee has shown the impugned amount as taxable in A.Y. 2013-2014 would be of no consequence. No justification to interfere with the Orders of the authorities below. Assessee was directed to produce the policy of the Government of India through which the amount have been given to assessee and the conditions stipulated therein to refund back the amount along with interest so as to clarify the position taken by the assessee before the authorities below. However, Learned Counsel for the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FDR's made out of unutilised funds provided by Commissioner of Payment (COP) and CCS (Controller of Cloth Subsidy Funds) and taxable u/s 56(1) of the I.T. Act, 1961. The findings of the A.O. are reproduced in the appellate order which reads as under : The submissions of the assessee are considered but not accepted because the interest income earned on the unutilized subsidy as given by the Ministry of Textile to the assessee is the income of the assessee. On this point reliance may be placed on the judgment of the Hon ble Supreme Court in the case of CTT vs. Tuticorion Alkali Chemicals Fertilizers Ltd. Wherein it is held that if a person borrows money for business purposes, but utilizes that money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, income is broadly defined as the true increase in the amount of wealth which comes to a person during the stated period of time. 2.1. The A.O, accordingly, made the addition of ₹ 1,94,68,000/-. 3. The assessee submitted before the Ld. CIT(A) that there was no guarantee fees paid by NTC during the year and addition on this ground be declared null and void. However without prejudice to above it was submitted that interest of the above amount was earned against FDR's held for and on behalf of Commissioner of Payment Controller Cloth Subsidy Funds. Assessee has also submitted that the Government of India provided certain funds to NTC which were to be paid to Mills Nationali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of assessee and noted that in the case of assessee credit of interest was not reversed on the advise of Comptroller Auditor General of India. Hence, the case Law relied upon by assessee are distinguishable. Appeal of assessee was accordingly dismissed. 4. We have heard the Learned Representative of both the parties and perused the material available on record. 5. Learned Counsel for the Assessee reiterated the submissions made before the authorities below. However, he has admitted that certain funds are remain un-utilised and consequently FDRs were made, on which, interest was accrued against it. It is also a fact that in the case of assessee, the credit of the interest was not reversed on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be of no consequence. In this view of the matter, we do not find any justification to interfere with the Orders of the authorities below. Further, during the course of arguments, Learned Counsel for the Assessee was directed to produce the policy of the Government of India through which the amount have been given to assessee and the conditions stipulated therein to refund back the amount along with interest so as to clarify the position taken by the assessee before the authorities below. However, Learned Counsel for the Assessee has shown his inability to produce any such policy or circular for consideration of the Bench. In these circumstances, it is clear that interest earned on FDRs was income of the assessee from other sources as is h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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