2017 (2) TMI 457

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.... : Ajay Rastogi, Rajeev Ranjan Pd., Nilanjan Chatterjee, Parijat Sourav JUDGMENT Ramesh Kumar Datta, J. 1. Heard learned counsel for the appellant- Revenue and learned counsel for the assessee. 2. The appeal has been filed assailing the order dated July 8, 2014 passed by the Income-tax Appellate Tribunal, Patna Bench, Patna in I. T. A. No. 22/Pat/2012 for the assessment year 2005-06. T....

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....e taxable. 4. On appeal the Commissioner of Income-tax (Appeals) set aside the findings of the Assessing Officer accepting the plea of the assessee that the funds have been provided by the State Government for carrying out specific projects under the BIADA Act and therefore interest earned thereon also partakes the character of capital. Since the funds which have been put in fixed deposit recei....

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.... assessee was not the beneficiary of these subsidies by any means but was only a safe keeper of the same for passing it on to various eligible units as per the schemes of the Government and accordingly the same was held to be not taxable receipt in the hands of the assessee and the addition was deleted. The finding of the Commissioner with regard to the interest earned was that the same was not ta....

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....r query as to how the said substantial question of law would have any positive effect on the case of the Revenue vis-a-vis the assessee, learned counsel is unable to satisfy us regarding the same. We are thus of the view that no such substantial question of law at all arises in the present matter. 8. So far as the chargeability of tax upon the interest of Rs. 4,01,363 and Rs. 33,84,159 is conce....