TMI Blog2009 (1) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Government of India for the purpose of implementation of the mega city scheme – interest income is not chargeable to tax. - 78 of 2008 - - - Dated:- 9-1-2009 - DEEPAK VERMA and K. RAMANNA JJ. M. V. Seshachala for the appellant. JUDGMENT The judgment of the court was delivered by DEEPAK VERMA J. - Sri M. V. Seshachala, learned counsel appeared on behalf of the appellants. 2. Heard on admission. Records perused. 3. The Revenue is in appeal under section 260A of the Income-tax Act, 1961, against the order dated September 7, 2007, passed by the Income-tax Appellate Tribunal, Bangalore Bench "B", in Appeal I. T. A. No. 1106/Bang/06 for the assessment year 2003-04. 4. The appellants had approached the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts are expected to provide requisite finances for implementation of the said project. The funds from the Central and State Governments will flow directly to the specialised institutions/nodal agencies as grant and the nodal agency will constitute a revolving fund with the help of Central and State shares out 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee 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. Therefore, 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 and setting aside the order of the Assessing Officer which is affirmed by the first appellate authority. The 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." 7. In the light of the aforesaid findings recorded by the Division Bench of this court, we are of the considered opinion that ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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