TaxTMI 
TaxTMI 
2019 (1) TMI 868
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.....: 1. Revenue is in the appeal against the Judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 20.3.2018 raising following question for our consideration:- "Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in allowing deduction of Rs. 3,31,73,000/- being interest credited to decommissioning Reserve fund ignoring the fact t....
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....ity of the the assessee company. Since this exercise would require considerable expenditure, the Government of India allows the assessee to collect decommissioning costs from its customers which at the relevant time was fixed at 1.25 paisa to 2 paisa per kwh. Under another notification issued by the Department of Atomic Energy, the assessee had to account for 12% interest on such decommissioning c....
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....irective of the Government of India under which it had to pay interest on its decommissioning reserves. The Tribunal noted that the funds do not belong to the assessee but the same were used for the purpose of business and the assessee paid interest to the funds at the instance of the Department of Atomic Energy. The Tribunal held that such interest cannot be said to be notional interest and the e....