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TMI Blog2017 (6) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... e faced with problems of Fire and subsidence due to the century old history of mining in these coal fields. These problems have been receiving attention of all concerned from time to time and the mitigation measures have been taken on case to case basis at different times. The problem of danger of subsidence of surface land over mine workings standing on small stocks vis-à-vis danger to habitations have attracted the attention of authorities concerned technical organizations and institutions from time to time. MMGI of India formed the first subsidence committee in 1922. The second subsidence committee was formed by the same institute, which submitted its report in 1937, recommending remedial measures to minimize the danger due to mine subsidence. A few more committees were set up to examine the problem and areas where danger due to subsidence was apparent. One such committee was "Baraka Subsidence Committee in 1957", which submitted its report on the danger subsidence of G.T Road and residential building in Barakar town. In 1953 two separate reports were submitted by the erstwhile NCDC entitled "Fire, Subsidence and Problems relating to Mine Workings in Underground ". In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structure on the surface - 4 collieries. f. Preparation, procurement and updating of mine plans to determine the extent of instability- 4 collieries. g. Controlling underground fire effectively to prevent surface subsidence and breathing of air through subsided area - 8 collieries. h. Assessing the danger of inundation to the workings due to surface or underground collapse - 3 collieries. The committee also recommended the formation of Area Development Authorities by the concerned State Governments by 1981 so that these could regulate the construction of structures over coal baring areas to deal with the problems of subsidence on a permanent footing. The long history of mining in these coal fields have led to increase in the number of sites prone to danger of safety due to fire and subsidence. Recurrent problems of fire and subsidence in these two coal fields and their spurt in 1996 required identification of subsidence and fire prone areas so that measures could be taken to tackle them. CMRI was engaged by BCCL for identification of such inhabited areas within the leasehold of BCCL. Subsequently, DGMS also identified a number of inhabitated areas, which require atte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the first project as mentioned above (Phase - I) was completed in February April / August '98 and the report submitted in three volumes. The second project as mentioned above (Phase - 11) has been prepared in two parts, one dealing with the technological measures for control of subsidence where feasible and the other dealing with rehabilitation and re-settlement needs for the areas where subsidence control is not feasible. These reports were submitted in January 1999. The Standing Sub-committee of SSRC on Environment and Ecology directed CMPDI in its XVIth meeting held at CIL, Calcutta on 30.06.98 to prepare a Master Plan for dealing with the problems of fire, subsidence and rehabilitation in the leasehold of BCCL, considering the fire control measures areas to be stabilised, areas requiring rehabilitation including the phased .requirement of funds for the same. Accordingly, three separate Draft Master Plan for "Dealing with Fire Subsidence Control of "Inhabitated Areas", and "Rehabilitation of Uncontrollable In-habitated Areas" was prepared in the month of February 1999. The drafts were discussed at CMPDI (HQ), Ranchi on 12.03.1999 and BCCL on 16.03.1999. Thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from subsidiary as income from the assessee and the same was deleted by the Ld. CIT(A) for A.Y. 2007-08. It was also argued that it is well settled law that to treat any amount as an income, one should have the legal right to receive the same and also one will have all the authority to expend the money as per her/his wishes. In the instant case, the money (contribution and interest thereon) received by the company will be used as per the directions of the concerned Ministries and the Company had no control to use the money. The Company is merely acting as a custodian of such money and is required to release the same as per the directions of the concerned Ministries. However, the assets generated from such money cannot be treated as assets of the assessee company. Pending utilisation of the funds, the money was kept in the bank account which has resulted into interest income. 4. The ld. CIT(A), however, did not pay heed to the contentions of the assessee and confirmed the addition by observing as under: "This is also a recurring issue in the appellant's case and also came up in appeal no. 179/CIT(A)-VI/Wd-6(2)/2011-12 in the immediately preceding year i.e A.Y. 2009-10. In para No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned has to be taxed as per the income tax law if otherwise exempted under the Income Tax Law. There is no specific exemption provided to the appellant on this income by Law. In the case-of the assessee, it has earned interest of Rs. 9723.28 lakhs but the tax has neither been paid by the assessee nor by any other entity and the fund does not belong to Govt. of India as al sovereign person. Since the assessee is showing the fund in its balance sheet & final accounts and is custodian; since the fund has earned income it has to be offered for the purpose of tax under the Income Tax Act, 1961. The Interest earned on the "Rehabilitation Fund" and 'amounting to Rs. 9723.28 lakhs is upheld as income of the appellant under the head "Income from Other Sources" since no taxes have been paid by the appellant on the receipt of amount of the rehabilitation fund, the rehabilitation fund is not the part of the business assets and the appellant has not treated-the receipt of rehabilitation fund as part of its business activity and has earned: only interest only form fixed deposit-of the rehabilitation fund amount. Therefore, the addition made by the Assessing-Officer on account of Interest ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al before this Tribunal against the order of the Ld. CIT(A) for deletion of the principal component of the amount received by the assessee from its subsidiaries towards 'shifting and rehabilitation fund', strengthens the stand of the assessee that the monies received does not belong to the assessee and the assessee is merely acting as a post office for collection and onward distribution of the same as per the directions of the Central Government. We find that similar issue had come up before this Tribunal in the case of DCIT, Circle-2, Kolkata vs. M/s West Bengal State Electricity Transmission Co. Ltd. in ITA No. 1822/Kol/2012 for A.Y. 2009-10, order dt. 30.10/2014, wherein the question raised before this Tribunal and the decision rendered thereon is as under:- 2. First issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by Assessing Officer on account of interest income. For this, Revenue has raised following grounds No.1 and 2:- "(1). Whether on the facts and the circumstances of the case, the Ld. CIT(A)-I, Kolkata has erred in both law and facts in observing that interest income did not belong to the assessee company ? (2). Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hands of the Government. Since the interest income was an income of the Government, there could not arise any taxability thereof. It is also a fact that the relevant deposits had been made under the PAN of the assessee since at the relevant time no separate body had been created for the maintenance of the UI Accounts. We find that on 21-10-2011 a Trust under the name and style of 'SLDC-UI FUND-WBSETCL" was created in accordance with the WBERC Regulation for the purpose of management of the Fund created through collection of UI charges and interest earned from the investment made out of the said UI Chares and the Trust does not have the ownership on the moneys lying in the Fund and for all the times to come it is the WBERC which is the owner of the Fund of the Trust. We further find that neither any asset or any income earned out of the UI account could ever be considered as any income in the hands of the assessee. The moneys lying in the UI account always belonged to the Government, viz. under the name of WBERC. It was only for the convenience in the matter of making investment in deposits of UI balances that the PAN of the assessee had been utilized. However, just because of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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