2016 (12) TMI 1859

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....not justified in upholding the addition of Rs. 9,46,51,086/- made to the taxable income of the assessee by treating the interest accrued on FDR's as income from other sources and subjecting the same for taxation . Fact of the matter is that the' assessee's business was in a pre-operational stage and the interest had been rightly reduced from the capital work in progress." 2. Brief facts of the case are that return declaring 'nil' income was e-filed by the assessee-corporation on 29/09/2012. The case was selected for scrutiny through CASS. The assessee company namely, H.P. Power Transmission Corporation Limited (HPPTCL), an undertaking of Government of Himachal Pradesh was established on 27th August, 2008 with a view to streng....

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....der : "Tax on income for the current period is determined on the basis of various judgments of Hon'ble Courts that income earned during construction period is not taxable and accordingly no current tax liability is determined." 3. The auditors further in para (E)(ii) of their "Auditor's Reports " has categorically mentioned about the change of accounting policies and accounting assumption during the previous year and reported as under : "During the year on the basis of various judgments of Hon'ble courts the corporation has not made any income tax provision which is in contravention to Accounting Standard AS-22 " Accounting for Taxes on income" which states the income-tax provisions to be calculated on the basis of prev....

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....uded that interest of Rs. 9,46,51,086/-was assessable in the hands of HPPTCL for Assessment Year 2012-13 as income from the other sources. Aggrieved by the same, assessee filed appeal. 4. The assessee challenged the order of the Assessing Officer before ld. CIT(Appeals) and his submissions are reproduced in the appellate order. The ld. CIT(Appeals) noted that the identical issue have been decided against the assessee by ld. CIT(Appeals) for assessment year 2010-11 and 2011-12 vide order dated 05.11.2014. The order of the ld. CIT(Appeals) dated 05.11.2014 has been confirmed by jurisdictional ITAT in ITA No. 68/CHD/2015 vide order dated 04.08.2015. The appeal has been decided against the assessee by ITAT by relying upon its own order in IT....