2013 (4) TMI 265

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....perused the material placed before us. We find that the learned CIT(A) has allowed the relief to the assessee following the decision of Hon'ble Jurisdictional High Court in the case of CIT Vs. Jaypee DSC Ventures Ltd. - (2011) 335 ITR 132 (Delhi), wherein it was held as under:- "As is noticeable from the stipulations in the agreement, the performance guarantee by way of bank guarantee was required for faithful performance of its obligations. The non-submission of the guarantee would have entailed in termination of the agreement and NHAI would have been at liberty to appropriate bid security. That apart, the release of such performance security depended upon certain conditions. Thus, it is clearly evincible that the bank guarantee was furni....

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....been awarded license by BSNL Govt. of India. For getting the license the company has to give a bank guarantee to BSNL Govt. of India for issuing the bank guarantees the require margin money in the form of FDR only. According the company has to make a FDR of Rs.19.31 crore and the same has been pledged with the bank as margin money for issuing the bank guarantee. The company has earned interest of Rs.16501064/- on FDR pledged with bank as margin money for issuing bank guarantee. The same has been shown under miscellaneous income in the schedule 4 of the accounts and being set off with the preoperative expenses. The project is not commenced during the current financial year. Hence no profit & loss account is prepared rather a statement of pre....