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TMI Blog2017 (4) TMI 1551X X X X Extracts X X X X X X X X Extracts X X X X ..... ) is not justified in upholding the interest earned on the deposits made in the pre operation period as income from other sources and thereby upholding the addition of R 12,10,11,966/- made to the taxable income of the assessee. 2. That in the facts and circumstances of the case the Ld Commissioner of Income Tax (Appeals) is not justified in upholding the misc income of Rs. 31,45,494/- as income from other sources . 3. That the order of Ld Commissioner of Income Tax (Appeals) is bad in law and facts." 3. In ground No. 1 the assessee has contested the action of the Ld. CIT(appeal) in upholding the interest earned on deposits made in the pre-operative period as income from other sources thereby upholding the addition of Rs. 12,10,11,966 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2013-14. The interest was earned on surplus funds available with the assessee company. This fact was duly noted by the Statutory Auditors of the assessee company in their Audit Report dated 23/12/2013. The statutory auditors commented on the accounting policies as under: "The assessment for F.Y. 2009-10 has been completed by the Assessing Authority (ACIT) and demand of Rs. 52.66 lac was raised which stands deposited against advance tax. HPPTCL has filed an appeal before CIT against the orders of the A CIT and matter is pending". 5. The auditors further in para (iv) of their "Auditor's Reports " had categorically mentioned about the change of accounting policies and accounting assumption during the previous year and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in Tuticorin Alkali Chemicals & fertilizers Ltd. Vs. CIT (1997) 227 ITR 172 (SC) Apex Court, made in the assessment order, the A.O. held that the gross interest earned by assessee was assessable under the head income from other sources. Therefore, it was concluded that interest of Rs. 12,10,11,966/-was assessable in the hands of HPPTCL for assessment year 2013-14 as income from the other sources and addition made thereof to the income of the assessee. 8. The matter was carried in appeal before the Ld.CIT (Appeals) who upheld the order of the Assessing Officer following the decision of the ITAT in the assessee's own case in assessment year 2011-12 and assessment year 2010-11. 9. During the course of hearing before us Ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the assessee company had filed reply vide their counsel's letter dated 29.1.2016 stating that the income shown under the head miscellaneous income comprised of sale of tender forms, interest on advances to contactors, LD charges etc. The assessee had further pleaded that the said receipts being incidental to the construction of project, should be deducted from preoperative expenses incurred.. The Assessing Officer did not find the reply of the assessee to be satisfactory and an amount of Rs. 31,45,494/- was brought to tax u/s 56 of the Income Tax Act. The matter was carried in appeal before the Ld.CIT(Appeals) who rejected the contentions of the assessee stating that nothing had been brought on record to substantiate the submissions with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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