9911796707
TMI Blog2020 (2) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... accrued to the Assessee was liable to tax. 2. The brief facts are that the Assessee is regularly given grants by the State of Punjab for various purposes including the construction of houses for police officials. It so happens that in a particular year the grant remains un-utilized and the money which is parked in the bank earns interest. As per the Assessing Officer this interest was exigible to tax whereas the Commissioner and the Tribunal held otherwise. The basis for the Tribunal's decision is that the amount of interest which accrues on any money parked in the bank would be deemed to be a further grant for that particular purpose and can be used only for that purpose and in the event that it can not be used for that purpose the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o upheld the findings of the Government. 6. Before us the learned counsel for the appellant has vehemently argued that the absence of any instance where the interest income was ever returned to the Government and the absence of any stipulation to this effect in the letter releasing the various grants to the Assessee clearly show that the interest income belongs to the Assessee. 7. Counsel for the appellant has relied upon a judgment passed by the Supreme Court in Commissioner of Income-Tax, Bombay City II Vs. Sitaldas Tirathdas, 1961 AIR 728 but that case is not applicable because in that case what the Supreme Court had decided that if the interest is spent by the Assessee as per his own desire it would constitute income whereas in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposits with banks." 10. Learned senior counsel appearing for the respondents has stated that the Assessee never claimed any exemption under Section 10 (23BBA) and in the circumstances, the only thing which can be held is that reference to Section 10 (23BBA) by the Tribunal was surplusage and was not required in view of the basic finding of fact that the income which accrued to the Assessee from the funds of the Government which were released to it were not diverted by it and could not be diverted by to any other purpose and had to be used only for the purposes which the Government directed and in case the funds were not used the Government had the right to recall them. 11. Questions of law raised by the appellant does not arise. Conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
