2022 (11) TMI 1078

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....sh, Sr. DR ORDER Captioned appeals filed by two different assesses arise out of two separate orders passed by National Faceless Appeal Centre (NFAC), Delhi pertaining to assessment years 2018-19. 2. Briefly, the facts are, assesses hitherto are resident corporate entities and are wholly owned subsidiaries of National Commodities Management Services Ltd. (NCML). Both the assesses have ente....

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....tion issued under section 143(1) of the Act rejecting the claim of refund, assesses preferred appeals before learned Commissioner (Appeals). Before the first appellate authority, the assessees contended that as per the terms of the concession agreement with FCI, the assessees have to furnish bank guarantee and for obtaining bank guarantee, the assessees have to keep certain amount as fixed deposit....

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....ax as revenue receipt, rather, it has been adjusted against cost of construction, the interest income corresponding to the TDS amount does not qualify as income for the assessment year under dispute. Thus, he held that TDS cannot be refunded to the assessees. 3. I have considered rival submissions and perused material on record. In so far as the factual aspect relating to the issue in dispute a....

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....st income pertained to the impugned assessment year and the concerned banks have deducted tax at source while crediting the interest income to the account of the assessee. The only reason on which the departmental authorities have rejected to grant refund of the TDS amount is, the interest income has been adjusted against the construction expenses. This, in my view, is unacceptable. In case of CIT....