TaxTMI 
TaxTMI 
2021 (7) TMI 85
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....nd to cure the defect, therefore, fees were deposited again on a later date resulting in a delay, therefore, of 175 days in the filing of the appeal. The contents of the application filed by the assessee are as under: "1. The present appeal had been preferred against the orders passed by the Ld Commissioner of Income Tax (Appeals) dated 28.03.2019 copy of which was received on 05.04.2019 and the last date of [imitation for filing of the appeal expired on 04.06.2019. 2. That the said appeal was filed with the registry of the Tribunal on 20/05/2019 however the appeal fees had been deposited under the head tax-on regular assessment whereas the same should have been under the head tax on self assessment. That the applicant tried its level best to gel the head of the challan changed but the same could not be done and to cure the defect the applicant again deposited the fees again on 25/11/2019 and the same had lead to a delay of 175 days in filing of the appeal. 3. The delay in filing of the appeal was neither willful nor intentional but had occasioned due to the reasons aforementioned. It is, therefore, most respectfully prayed that the delay in filing of the appeal may kindly ....
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....essee in ITA No. 789/Chd/2019 relating to assessment year 2015-16 ITA No. 789/Chd/2019 (A.Y. 2014-15): 9. The effective ground raised by the assessee reads as under: "1. That in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) is not justified in upholding the addition of Rs. 11,64,79,756 made by taxing the interest as the income of the appellant under the head income from other sources and that too without allowing the set off of the interest paid on borrowed funds from the same. Fact of the matter is that the interest accrued was to be set off against the capital work in progress and did not tantamount to be the income of the appellant." 10. Drawing our attention to the facts of the case from the assessment order, the Ld. Counsel for the assessee pointed out that the assessee company namely, HP. Power Transmission Corporation Limited (HPPTCL), an undertaking of Government of Himachal Pradesh was established on 27th August, 2008 with a view to strengthen the Transmission Network in Himachal Pradesh and to facilitate evacuation of Power from upcoming Generating Plants. The jobs entrusted to Corporation by HP. Government inter-alia included e....
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....der of the CIT(A) dated 05.11.2014 for A.Y. 2011-12 has been confirmed by the jurisdictional ITAT in ITA No. 68/Chd/2015 vide order dated 04.08.2015. The appeal has been decided against the assessee by the ITAT by relying on its own order in ITA No. 488/Chd/2012 and 169/Chd/2013 for the A.Y. 2008-09 & 2009-10. 5.2.1 However, during the year the appellant has tried to distinguish on facts by arguing that the funds from ADB were specifically advanced for specific purposes and the interest accrued on the FDRs made from the said accounts and funds and the interest paid on the same are clearly inter linked and need to be set off. The appellant has relied on the judgment of the jurisdictional ITAT in the case of H.P. Power Corporation ITA No. 842/Chd/2014 dated 06.05.2015. The appellant in the year under consideration has however relied on the order of this office in the case of M/s. H.P. Power Corporation ltd. which has been decided by following the order of the jurisdictional ITAT in ITA No. 842/Chd/2014 dated 06.05.2015. However, the appellant has failed to explain as to how the facts of the case under consideration are different from the facts of the case for A.Y. 2013-14 wherein t....
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....hat during this year assessee has borrowed certain funds as mentioned in the submissions before AO from PFC and ADB. The Assessee had earlier taken the money from Delhi Jal Board on which no interest was required to be paid. It was held in the earlier year in assessee's own case that interest on such investment of these funds would be taxable. In view of the decision of Hon'ble Supreme Court in case of Tuticorin Alkali Chemicals And Fertilizers Ltd. Vs. CIT 227 ITR 172. However, the interest earned on temporary investment made out of the borrowed funds can not be taxed because these funds have been specifically borrowed for the purpose of project but project was delayed and therefore funds were parked in temporary investment in the form of FDR. Same view was taken in the case of M/s. Beas Valley Power, Corporation Ltd. Vs. The ACIT in ITA No. 857/Chd/2012 it was observed at page 12 & 13 as under: 12. On the other hand, ld. DR relied upon orders of the authorities below. 12(i) On consideration of the above facts and material on record, we do not find any justification to sustain the findings of the authorities below. It is not in dispute that assessee corporation is a gove....
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.... the assessee for the purpose of facilitating the work of construction. The activities of the assessee in connection with all these three receipts were directly connected with or incidental to the work of construction of its plant undertaken by the assessee. The advances which the assessee made to the contractors to facilitate the construction activity of putting together a very large project was as much to ensure that the work of the contractors proceeded without any financial hitch as to help the contractors. The arrangements which were made between the assessee-company and the contractors pertaining to these three receipts were arrangements which were intrinsically connected with the construction of its steel plant. The receipts had been adjusted against the charges payable to the contractors and had gone to reduce the cost of construction. They had, therefore, been rightly held as capital receipts and not income of the assessee any independent source. 12(ii) The Hon'ble Delhi High Court in the case of Indian Oil Panipat Power Consortium Ltd. V ITO 315 ITR 255 (Delhi) held as under : The assessee-company was incorporated in pursuance of a joint venture entered into between....
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....assessee had borrowed funds from ADB (Asian Development Bank) specifically for the purpose of the project but since the project was delayed the funds were parked in temporary investment in the form of FDR. In this factual background the ITAT, following its decision in the case of M/s. Beas Valley Power Corporation Ltd. Vs. ACIT in ITA No. 857/Chd/2012, had held that the interest of such specifically borrowed funds be not subjected to tax. The Ld. Counsel for the assessee thereafter stated that in the impugned case also the assessee had borrowed project specific funds from ADB and on account of certain delays in execution of the project the funds could not be utilized and were, therefore, parked in FDRs earning interest thereon. The aforesaid facts were pointed out to us from the Annual Report of the assessee, placed before us as Annexure-A to the Paper Book. Our attention was drawn to page 17 of the Annual Report and it was pointed out therefrom that the assessee had taken loan from ADB amounting to Rs. 11,056 lacs in the impugned year which stood reflected in the schedule of Long term borrowings (Schedule No. 4 of the Annual Report). He Further drew our attention to the copy of lo....
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.... GIS Sub station at Pragati Nagar in Distt. Shimla with LILO of both circuits of 400 kV Jhakri-Abdullapur D/C line of PGCIL. iv) 66/220/400 kV GIS sub station (65/220 kV, 2x80/100 MVA+220/400 kV, 2x315 MVA) at Wangtoo in Distt. Kinnaur with LILO of both circuits of 220 kV Kashang-Bhaba and 400 kV Wangtoo-Abdullapur D/C Lines. AND WHEREAS future Tranches shall fund Transmission Projects in Distt. Kullu, Distt Kangra & Distt. Mandi (Reas Basin), Distt. Chamba (Ravi Basin), Distt Kinnaur (Satluj Basin) and Distt. Shimla (Yamuna Basin). AND WHEREAS the Government of India will further transfer this loan granted by Asian Development Bank to the Government of Himachal Pradesh, which inter alia shall transfer the same to H.P. Power Transmission Corporation Limited (Second Party) which is designated; implementing agency for these Transmission Projects. 15. Thereafter he took us to page No. 21 of the Annual Report, Schedule-11 being the schedule of Income and pointed out that on account of the investments made out of the said funds interest of Rs. 246.96 lacs had been earned by the assessee. He also pointed out that in the preceding year the amount of interest earned was a meager amo....
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....est was earned by the assessee on surplus funds available with it. On the basis of these facts, which were found to be identical with that in the preceding year wherein the ITAT had held the said income to be taxable following the decision of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd. (supra), the issue was decided against the assessee. The ITAT noted that no distinguishing facts were found in the preceding year and, therefore, treated the issue as covered by the order of the ITAT in the preceding year in the case of the assessee. 20. In the order passed by the ITAT in the case of HP Power Corporation in ITA No. 842/Chd/2014 dated 06.05.2016, we find that it was noted in the order at para 6 that the assessee had been found to have borrowed certain amount from Asian Development Bank (ADB) for specific project and on account of delay in the project they had been parked in temporary investments in FDRs. The interest earned thereon was held by the ITAT to be not taxable following the view taken by the ITAT in the case of M/s. Beas Valley Power Corporation Ltd. (supra) wherein the decision of the Hon'ble Apex Court in the case of Tuticor....