Case Law Details
Case Name : Commissioner of Income Tax II Vs Sar Infracon Pvt Ltd. (Gujarat High Court at Ahmedabad)
Appeal Number : Tax Appeal No. 855 of 2013
Date of Judgement/Order : 03/10/2013
Related Assessment Year :
Courts :
All High Courts Gujarat High Court
Interest received on FDR made from grant received from Govt. can’t be considered as assessee’s income if such interest is to be treated as part of the grant as per the terms of release of such grant:
What is important is whether the interest earned on the Central Government grant is to be treated as the income earned or not, and not what the assessee claimed. As stated hereinabove, in the letter of the Central Government releasing the grant, which provides a condition that the interest earned on the central grant already released would form part of the central grant limit of Rs. 50 Crores, the amount of Rs. 21,22,253/= being interest earned on the fixed deposit of Rs. 16.70 crores which was the grant received by the assessee from the Central Government cannot be said to be its income and the aforesaid sum, as per the condition of release of grant, the interest earned on the Central Government grant ie., Rs. 21,22,253/= in the present case is to be included as a part of the grant received from the Central Government. Under the circumstances, as such, no error has been committed by the Tribunal in deleting the addition of Rs. 21,22,253/= made by the Assessing Officer, treating it as the income of the assessee.
HIGH COURT OF GUJARAT AT AHMEDABAD
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What about the refund claimed by the assesee??
Is it still allowed to be claimed without offering the Interest as income??