TaxTMI 
TaxTMI 
2018 (11) TMI 777
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....lowing additional grounds of appeal -which are without prejudice to the original grounds of appeal filed: On the facts and in the circumstances of the case and in law, the Appellant prays that the interest income of Rs. 1,30,99,452/- earned or accrued during AY 2011-12 on investment made in tax-free bonds issued by India Infrastructure Finance Co. Ltd., inadvertently offered to tax, be allowed as exempt income u/s. 10(15)(iv) of the Income-tax Act, 1961 and the learned Assessing Officer be directed to reduce the total income accordingly. Without prejudice to Ground no. 1 above, on the facts and in the circumstances of the case and in law, assuming without accepting that the interest income of Rs.l,30,99,452 on investment made in tax-fre....
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....ecided on merit. Reliance was also placed on the decision of Supreme Court in case of Jute Corporation of India Ltd., 187 ITR 688 and Taylor Instrument Co. (India) Ltd., 198 ITR 1. 4. Learned AR also placed reliance on the decision of Hon'ble Bombay High Court in the case of CIT v. Pruthvi Brokers & Shareholders Pvt. Ltd. [2012] 23 taxmann.com 23. 5. We have carefully gone through the decision of Hon'ble Bombay High Court in case of Pruthvi Brokers & Shareholders Pvt. Ltd., wherein it was held that even though deduction was not claimed in the tax return, the assessee is entitled to claim the same before the appellate authorities. The Hon'ble Bombay High Court has also discussed the judgements of the Hon'ble Supreme Court in the c....
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....not have been raised" and not "were not in existence". Grounds which were not in existence when the return was filed or when the assessment order was made fall within the second category viz. where "the ground became available on account of change of circumstances or law." 14. The facts in Jute Corpn. of India Ltd. (supra) various judgments referred to therein as well as in subsequent cases, which we will refer to, establishes this beyond doubt. In many of the cases, the grounds were, in fact, available when the return was filed and/or the assessment order was made. In Jute Corpn. of India Ltd. (supra) the ground was available when the return was filed. The assessee did not claim any deduction of its liability to pay purchase tax as it en....
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.... deserves to be admitted in view of the decision of the Hon'ble Supreme Court as well as Hon'ble Bombay High Court in case of Pruthvi Brokers and Shareholders Pvt. Ltd., We observe that such interest income is exempted as per CBDT Notification No.9/2009 dated 07/01/2009. We also observe that the interest earned on bonds issued by IIFCL has been claimed and allowed as 10(15)(iv) of the Act in subsequent years, i.e., in AY 2012-13, AY 2013-14 and AY 2014-15. The facts and law pertaining to the said matter remain the same throughout all the years including the year under consideration. The Revenue Authorities have consistently accepted that the interest earned on bonds issued by IIFCL is exempt u/s. 10(15)(iv) of the Act in the subsequent year....