TMI Blog2020 (11) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... te Government vide various GRS decided to convert the grant given during the F.Y. 2005-06 to 2007-08 [ 2019 (9) TMI 376 - ITAT AHMEDABAD] for implementation of Jyoti Gram Yojna (JGY) into equity share capital. Total grants received during the aforesaid financial years were allocated among the four distribution companies for implementation of the aforesaid scheme of the State Government. We do not find any infirmity with the decision of the Ld. Therefore, the aforesaid grants received cannot be treated as income of the assessee company. Accordingly, this ground of the appeal is dismissed - R/Tax Appeal No. 186 of 2020 - - - Dated:- 11-9-2020 - Honourable The Chief Justice Mr. Vikram Nath And Honourable Mr. Justice J.B. Pardiwala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakh is confirmed for the year under consideration also. Thus, the ground of appeal no.2 of the appellant is dismissed. 4. The aforesaid findings recorded by the CIT (A)) came to be affirmed by the Tribunal while dismissing the appeal filed by the Revenue, holding as under; The assessee filed following ground of appeal: 1.0 The learned Commissioner of Income Tax(Appeals) erred in law and fact has confirmed additions of ₹ 8,72,91,000/- on account of Capital Grants Subsidies and Consumers' Contribution on the ground that the appellant should transfer 15% of the total Grants/subsidies/consumer contribution received during the year as against 10% offered by the appellant. 2.0 The learned Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall apply mutatis mutandis. 19. Ground No.2 this Ground has already been decided in favour of the assessee by us in ITA No.652/Ahd/2013 for A.Y. 2009-10 at para 15 hereinabove. In the absence of any change circumstances same shall apply mutatis mutandis. 20. Ground No.3 This ground relates to the order passed by the Learned CIT(A) in not allowing the set off of unabsorbed depreciation of earlier years against interest income assessed as income from other sources. 21. It appears from the records that the Learned CIT(A) has already been pleased to direct the Learned AO to allow the set off of unabsorbed depreciation loss against the income from other sources of ₹ 1,77,06,000/- and hence the issue has become infructuous and dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the cost of assets. Therefore, the Assessing Officer estimated 15% of grant of ₹ 2500 Lac which worked out at of ₹ 3750 Lac as income of the assessee. 10 The assessee, therefore, being dissatisfied, filed an appeal before the CIT(A). The CIT(A) deleted the addition holding that the assessee has not acquired any fixed assets on which depreciation has been claimed, and therefore, such grants cannot be reduced from cost of fixed asset of the assessee on the basis of estimate. 11 The Revenue, therefore, went in appeal before the Tribunal and the Tribunal confirmed the order passed by the CIT(A) by holding as under: 28. We have heard the rival contention and produced the material on record on this issue. During a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the aforesaid grants received cannot be treated as income of the assessee company. Accordingly, this ground of the appeal is dismissed. 12 We are in agreement with the concurrent finding of fact arrived at by the CIT(A) as well as the Tribunal as the assessee did not acquire any fixed assets on which depreciation has been claimed, and therefore, grants cannot be reduced from cost of fixed asset of the assessee. Therefore, appeal stands dismissed qua question No.2[c] proposed by the Revenue. 6. In view of the aforesaid, we see no good reason to entertain this appeal being devoid of any merit. The Tribunal could not be said to have committed any error in passing the impugned order. 7. In the result, this appeal fails ..... X X X X Extracts X X X X X X X X Extracts X X X X
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