2007 (4) TMI 150

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....hi, Bench "F" in I. T. A. No. 2441/ Del/97 relevant for the assessment year 1991-92. 2 The assessee is a State industrial undertaking. It appears that a scheme was formulated by the Delhi Administration for development of Narela industrial complex. The assessee was to be in charge of development of the complex. Apparently for management of the financial resources, a Narela revolving fund was cr....

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....e entries in the subsequent year and deposited the amounts with the Delhi Administration. In other words, the case of the assessee was that it had not earned any income by way of interest. 5 The Assessing Officer as well as the; Commissioner of Income-tax (Appeal) did not accept the version given by the assessee and concluded that the interest was actually the income of the assessee. 6 The T....

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....arned by investing surplus funds in the banks was not the property of the assessee and, therefore, was not even the income of the assessee. The Narela revolving fund and the interest earned on surplus funds belonged to the Delhi Administration. Therefore, there is no question of adding the amount to the income of the assessee, which was only a development agency. 8 We cannot find any fault with....