2015 (6) TMI 1151

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....(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs. 726,878/- being Intt. on year marked funds (i.e. Development Fund & Infrastructure Development Fund) 2. That in any case and in any view of the matter Ld. CIT(A) has erred in law and on facts in not deleting the additions/disallowances made by Ld. AO as the assessment order is not sustainable on various legal and factual grounds and more so by recording incorrect facts and finding."  2. It is second round of proceedings before us. In the first ground, when this matter came up before us, it was remitted to the file of the CIT(A), vide our order dated 1st February, 2013, with the following directions :- "4. I have considered the rival subm....

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....lt, the appeal of the assessee is allowed for statistical purposes."" 3. When the mater thus ravelled back to the ld. CIT(A) he once again held the fixed deposit interest to be taxable in the hands of the assessee and held as follows :- "4. The above written submission has been considered by me. The similar issue has already been dealt by me in assessee's own case for AY 2010-11 in the appeal order A.No.49/CIT(A)-II/AgraJDCIT- 5/Firozabad/2013-14 dated 07.04.2014. In the above mentioned appellate order after examining the G.O. dated 15.01.1998 relied upon by the Ld. AR of the assessee(appellant) putting up argument for non taxability of interest accrued on FDR, I have found that the assessee(appellant) has not maintained Infrastructu....

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....ructure Development Fund Account. Since, the assessee is not utilizing the Infrastructure Development Fund Account opened in District Cooperative Bank, keeping the fund received out of development charges as per direction contained in G.O. and rather, it has invested surplus money available with it in FDRs for the purpose of earning interest, I agree with the AO that the interest received by the assessee on FDRs is a revenue receipt in the hand of the assessee being earned on investment made by it and such income cannot be said to be part of the Infrastructure Development Fund because this interest amount is not accrued on the money deposited in a separate bank account maintained for the purpose of infrastructure development fund to be util....

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....rest as it has been found in case of the present assessee in appeal. Therefore, I find that the facts of the case of present assessee(appellant) in appeal is distinguishable from the facts of the above mentioned two case laws cited by the Ld. AR . and decision of the above mentioned two cases cannot be applied in the case of present assessee( appellant). 5. Considering the above facts and circumstances of the case of the assessee (appellant), I confirm the addition of Rs. 7,26,878/- made by the AO on account of interest earned on FDRs considering these amounts in the hand of the assessee as revenue receipt. Accordingly, Ground no.5 is dismissed." 4. The assessee is aggrieved and is in appeal before us 5. I have heard the rival contention....