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TMI Blog2024 (11) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... as 'Learned A.O.') for the Assessment Year 2012-13. 2. Brief facts of the case are that the appellant/assessee is a Central Public Sector Enterprises(CPSE) under the administrative control of the Ministry of Ayush(Statement of Facts), Government of India, New Delhi, engaged in business of manufacturing Ayurvedic and Unani Medicines at its unit at Village-Mohan Via Ramnagar, Distt- Almora, Uttarakhand. In the FY 2010-11 and 2011-12 the Ministry of Ayush, Government of India, made a Share Capital infusion of Rs. 34.00 crores in the Corporation for "Renovation and Modernization of the existing facilities" of the Assessee's Manufacturing Unit situated at Village Mohan- Ramnagar-Uttarakhand. During the assessment year, the Appellant- Assessee e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of interest income under Section 80IC of the Act and of Rs. 5,77,910/- on account of disallowance of deduction claimed under Section 80IC on Scrap Sales. 3. Appellant/Assessee filed appeal before Learned CIT(A) which was dismissed vide order dated 28.03.2018. 4. Being aggrieved appellant/assessee preferred present appeal. 5. Learned authorized representative for appellant/assessee submitted that Learned CIT(A) erred in confirming addition of Rs. 1,29,00,837/- on account of interest earned on Fixed deposit held by the corporation- as custodian, on account of Grant-in-Aid sanctioned for Capital expenses. Learned CIT(A) erred in relying upon entries in the books of accounts maintained by assessee. It is well settled proposition of law t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on interest of Rs. 1,29,00,837/-. FDR was made out of capital contributed by the Ministry of Ayush, Ayush Bhavan, New Delhi which specifically granted to the Corporation for "Renovation and Modification of its existing facilities." Letter dated 29.12.2015 stated "the interest earned, if any, shall either be refunded or utilized with prior permission of the Government." Moreover, the interest so earned was used for capital expenses- as mandated by the Ministry of Ayush, New Delhi and whole of the interest earned was later on converted as Share Capital Contribution of the Central Government as per letter dated 18.01.2016 issued by the Ministry of Ayush, Government of India, New Delhi. The interest on time deposits was treated as share ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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