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TMI Blog2017 (11) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... NI, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER For The Assessee : Sh. M.P. Rastogi, Adv. For The Revenue : Sh. S.P. Gupta, Sr. DR ORDER PER SHRI K. NARSIMHA CHARY, J.M. Challenging the order dated 23.07.2014 in appeal no. 95/13- 14 passed by the Ld. Commissioner of Income Tax (Appeals)-XVI, Delhi (hereinafter for short called as the Ld. CIT (A) ). Revenue filed this appeal on the following grounds: 1. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the disallowance of interest during construction period amounting to ₹ 2,93,00,000/- by not considering the detailed observation of the AO that in view of the clear directions conveyed vide proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case and in law, the Ld.CIT (A) has erred in deleting the disallowance of provision of other retirement benefits amounting to ₹ 72,94,614/- by not considering the detailed observation in the assessment order that provision made under the heads long service award, post retirement medical benefit, TA on retirement and social security benefit is an unascertained liability and is to be given treatment at par with other retirement benefits mentioned in AS 15. 5. On the facts and circumstances of the case, the appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal. 2. Briefly stated facts are that the assessee company is a JV company supplying whole of the pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest earned during the construction period which according to the assessee has to be set off against the interest that was paid on the borrowed amounts. Further the AO made an addition of ₹ 72,94,614/- on account of net provision of retirement benefits by disallowing the same. In appeal Ld. CIT (A) deleted both these additions by following the decisions reported in CIT vs. Bokaro Steels Ltd. (SC) (1999) 236 ITR 315, CIT vs. Karnataka Power Corporation (SC) [2001] 247 ITR 268, Indian Oil Panipat Power Consortium Ltd. vs. ITO (2009) 315 ITR 255 (Del.) and decision of Hon ble Jurisdictional Delhi High Court in appellant s own case of NTPC Sail Power Company (P) Ltd. vs. CIT in ITA No. 1238/2011 in decision dated 17/07/2012 for the AY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA Nos. 1494 1495/Del/2013 for the assessment years 2008-09 2009-10, wherein the set off was allowed. The Hon ble Jurisdictional High Court dismissed the appeal preferred by the Department questioning the order dated 28.02.2014 passed by this Tribunal in ITA Nos. 1494 1495/Del/2013. There is no dispute as to these facts and we have gone through these orders since there is no change in circumstances, and in view of the binding precedent set by the Hon ble Jurisdictional High Court in assessee s own case for the AY 2007-08 and followed subsequently, we do not find any illegality or irregularity in the conclusion reached by the Ld.CIT (A) that the interest during construction has to be allowed as set off and uphold the same. We, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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