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TMI Blog2011 (1) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment years 2002-03 to 2006-07. Since common and identical issues are involved in all these appeals, these are clubbed together and disposed off by this combined order for the sake of convenience. 2. First we will take up the appeals filed the assessee in ITA Nos. 376 to 380/Hyd/2010. The only grievance of the assessee is with regard to the disallowance of interest paid to the bank and financial institutions by the department on the ground that the assessee has not offered the interest income earned by it in its profit and loss account. Brief facts of the case are that the assessee is an undertaking of the Government of Andhra Pradesh and is a Limited Company established to provide houses to the weaker sections in Andhra Prades ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uses and not offered any income on the construction activity which is factually incorrect. It is submitted that the unit cost of the house includes subsidy, loan and beneficiary contribution. At present, the unit cost of the house is Rs.25,000/-, which comprises of subsidy of Rs.7,000/-, loan of Rs.17,500/- and the beneficiary contribution of Rs.500/-. Depending on the physical targets fixed by the government, the loan component requirement will be worked out and the loans are mobilized under two different categories (1) Deferential Rate of Interest (DRI) and (2) Non-Deferential Rate of Interest (Non DRI category). The 50% of the loans required will be mobilized under the DRI category which carries 4% of interest per annum which is a mandat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovery of interest from the beneficiaries. 4. On the other hand, the learned departmental representative submitted that the assessee company has not maintained nor filed any account for the interests received from the beneficiaries. Similarly, the details of actual collections of principal and interest amount separately from its beneficiaries were also not filed before the assessing officer and the same were not produced even before the CIT (A) for his perusal on the date of hearing before him. Therefore, there should not be any grievance from the assessee for disallowing the assessee s claim of interest payments when it had not provided details of interest earned by it particularly when it had not offered the interest income in the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to various commercial banks and financial institutions. Hence, we allow the grounds raised by the assessee on this issue. However, we direct the assessee Corporation to furnish the details of interests received from its beneficiaries for all the assessment years under consideration and we direct the assessing officer to treat the said interest receipts as the income of the assessee Corporation in the respective assessment years. Accordingly, the ground raised by the assessee is partly allowed as indicated above. ITA No.381/Hyd/10- Assessment year 2006-07:- 6. This appeal is filed by the assessee corporation against the order passed by the CIT (A)-II, Hyderabad under section 250 of the Act with regard to the fringe benefit tax. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not obtained. But, the Corporation is in possession of correspondence with the CA and the original Form No.10A duly signed by the then Managing Director and also the order sheet of the relevant income-tax file. After filing Form 10A, in 1989 the Corporation filed returns and in all the computations section 11 exemption was claimed and on the basis of the above established facts and as there are no further verifications under section 12, at that time the Corporation s name would have been entered in the register of application under section 12A(a) maintained in the office of the Commissioner of Income-tax and further submitted that the fringe benefits assessment may kindly be directed to assess at nil value. It is further submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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