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TMI Blog2015 (6) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with Government directions on disposal of the funds relating to infrastructure development. The assessee does not get any unfettered discretion to use such interest earnings, but these earnings only add up to the corpus which can be used in terms of Government directives and for the purpose of infrastructure development. That aspect of the matter being undisputed it is of considered view that interest in question cannot be treated as income of the assessee. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of income in the hands of the assessee, which is arising out of 3 ITA No. 498/Agra/2012 the assessment order, therefore, it was incumbent on the part of the ld. CIT(A) to have considered and discussed this issue in detail on merits. According to section 250(6) of the IT Act, the ld. CIT(A) shall have to give reasons for decision in the appellate order while deciding the issue. It, therefore, appears that the order of the ld. CIT(A) is contrary to the submissions of the ld. Counsel for the assessee and copy of the written submissions filed in the paper book and is a non-speaking order on this issue. The impugned order, therefore, cannot be sustained in law. I accordingly set aside the order of the ld. CIT(A) and restore this issue to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see (appellant) is in fact mainly making investment of surplus money available with it in various FDRs and not depositing such fund in any Infrastructure Development Fund Account maintained separately in a bank, if any, opened by it in a bank for the purpose of development of city and hence, there is no utilization of such fund for the purpose of development of the infrastructure of the city. I have found that one bank account in District Co-operative Bank is opened marked as Infrastructure Development Fund Account but only a nominal amount of ₹ 4,23,361/is kept in this Bank Account and surplus money is invested in FDRs. Therefore, because of not keeping the fund in this account, the funds are not readily available for development of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art of infrastructure development fund because such FDRs are not found to have been made by withdrawing money from Distt. Cooperative Bank Account maintained for the purpose of infrastructure development fund. Considering the above position of the availability of surplus fund with the assessee (appellant) and making of FDR out of such fund, the AO has been found justified in treating interest on FDRs as revenue receipt taxable in the hand of the assessee. Decision cited by the Ld. AR in the case of CIT Vs. Lucknow Development Authority (supra) and Saharanpur Development Authority Vs. CIT (supra) would not apply in the present case under appeal because in the first case, the assessee was maintaining a separate infrastructure development fund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are at the disposal only in accordance with Government directions on disposal of the funds relating to infrastructure development. The assessee does not get any unfettered discretion to use such interest earnings, but these earnings only add up to the corpus which can be used in terms of Government directives and for the purpose of infrastructure development. That aspect of the matter being undisputed before me, I am of the considered view that interest in question cannot be treated as income of the assessee. I, therefore, direct the Assessing Officer to delete the impugned addition of ₹ 7,26,878/-. The assessee gets the relief accordingly. 7. In the result, appeal filed by the assessee is allowed.. Pronounced in the open court toda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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