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TMI Blog2017 (10) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar to the decision of the Tribunal in case of Angul Sukinda Railway Ltd. [ 2017 (4) TMI 515 - ITAT CUTTACK ] and the mobilisation advance given to the contract were for the purpose of contract work of laying the railway line and intrinsically connected with the capital expenditure of the assessee prior to the commencement of its business. Accordingly, we delete the addition made by the AO and allow the grounds of appeal of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2 to 5 of the order and also relied on the Hon'ble Apex Court decision. Further, the AO relied on the judicial decisions and treated that the interest on mobilization advances is revenue receipt and made addition to the returned income and assessed income of ₹ 8,32,11,390/- and passed the order u/s.143(3) of the Act dated 18.02.2013. 4. Aggrieved by the order of AO, the assessee filed an appeal with the CIT(A), whereas the CIT(A) considered the facts and findings of AO and dealt exhaustively on the issues and relied on the judicial decisions and also relied on the remand report and finally dismissed the appeal of the assessee 5. Aggrieved by the order of CIT(A), the assessee has filed an appeal before the Tribunal. 6. Before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dealt at page 8 para 16 which reads as under :- 16. I find that the Assessing Officer in the assessment order has stated that it is found that the assessee company is shown to have earned interest on mobilization advance given to contractors for execution of project amounting to ₹ 26,39,428/-. The Assessing Officer has also observed in his order that neither there was any doubt on its necessity nor was the veracity of the same questioned. But the issue under consideration was the treatment of interest on mobilization advance so made. Therefore, he brought the interest income of ₹ 26,39,428/- to tax under the head "income from other sources" following the decision of Hon'ble Supreme Court in the case of Tuticorin Alkali Chemi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l receipts and not income of the assessee form any independent sources. I find that the facts of the instant case are similar to the facts of the case which were before the Hon'ble Supreme Court in the above case of Bokaro Steel Ltd (supra). In the instant case also, the mobilization advance given to the contractor were for the purpose of contract work of laying down the railway line and intrinsically connected with the capital expenditure of the appellant prior to the commencement of its business. Respectfully following the decision of the Hon'ble Supreme Court in the case of Bokaro Steel (supra), I hold that the interest income of ₹ 26,39,428/- earned by the assessee from mobilization advance to contractor Railway Vikash Nigam Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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