TaxTMI 
TaxTMI 
2008 (10) TMI 260
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....e by contending that the said interest income arises by way of interest from an infrastructure capital company. The AO found that for claiming exemption under s. 10 (23G) such an infrastructure capital company should have been approved by the Central Government. Since the Central Government has not approved the said infrastructure capital company to be recognized as such, the interest accruing thereon is not eligible for exemption under s. 10(23G). The assessee did not challenge the issue in further appeal. This resulted into addition of Rs. 3,82,377. 3. The AO on the basis of finding given in the assessment order, held that the assessee was not only required to be an infrastructure capital company but also to be approved by the Central ....
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.... in the business of developing a housing project which is an infrastructural facility as defined in s. 10(23G)(c)(iv) of IT Act, 1961 and same is fully qualified for approval under s. 10(23G) of IT Act, 1961. We would be obtaining the necessary approvals as may be required under the provisions of IT Act in due course." ATS also obtained possession of land from New Okhla Industrial Development Authority as per their possession letter dt. 23rd Feb., 1999. ATS also applied for getting approval under s. 10(23G). However, till date neither application has been approved nor rejected. In spite of various correspondences between ATS and Government of India in this regard, which are at pp. 11 to 21 of the paper book and in spite of vigorous persu....
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....rms of Expln. 1 to s. 271(1)(c) penalty is leviable. 6. We have considered relevant facts, arguments advanced and the case laws cited. While filing return of income the assessee claimed exemption under s. 10 (23G) of the Act. The assessee was in possession of various letters and correspondence between ATS and Central Government as well as other correspondence to prove that there is all possibility that ATS will be granted registration as infrastructure company which in turn make the assessee eligible for claiming exemption under s. 10(23G). The following documents were submitted before the lower authorities in support of assessee's quantum claim: (i) Letter from ATS Promoters & Builders (P) Ltd. dt. 1st Feb., 1999 inviting offer for a....
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....m ATS Promoters & Builders (P) Ltd. to the CBDT along with documents and clarifications required by the CBDT; (xi) Letter dt. 10th Jan., 2001 from the CBDT to ATS Promoters & Builders (P) Ltd. requiring certain further clarifications; (xii) Letter dt. 1st Feb., 2001 from ATS Promoters & Builders (P) Ltd. to the CBDT providing the clarifications required by the CBDT vide its letter dt. 10th Jan., 2001; (xiii) Reminder letter dt. 14th May, 2002 to CBDT on behalf of ATS Promoters & Builders (P) Ltd. requesting for disposal of application for approval under s. 10(23G); and (xiv) Reminder letter dt. 23rd Aug., 2002 to CBDT on behalf of ATS Promoters & Builders (P) Ltd. requesting for disposal of application for approval under s. 10(2....