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TMI Blog2012 (9) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... Standing Counsel ORDER Per Vikas Awasthy, JM: The appeal has been filed by the assessee impugning the order of the CIT(A) VI, Chennai dated 20.12.2011. 2. The assessee is a State owned Transport Corporation. The assessee had filed its return of income on 30.10.2004 relevant to the assessment year 2004-05. The return of the assessee was processed under section 143(1) on 29.03.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond appeal before the Tribunal assailing the order of the CIT(A). The only ground raised by the assessee in appeal before the Tribunal is addition of ₹ 7,29,00,000/- as trading receipts whereas funds were provided by the Government of Tamil Nadu to the assessee for payment of interest on account of belated payment of terminal benefits to the employees. 4. Shri K.Santhanakrishnan appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce as on 31.03.2004, therefore, the same cannot be treated as trading receipt for the assessment year 2004-05. The A.R. further contended that undisbursed balance amount has actually been adjusted fully against the students concession subsidy due to the assessee from the Government of Tamil Nadu in the subsequent years. The A.R. placed on record copy of order G.O.Ms. No.44 dated 24.03.2009 vide wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee from the State Government. The Assessing Officer vide assessment order dated 25.10.2007 has treated the said amount as trading receipt for the reason that the said amount was to be kept in separate account and not to be utilized for any other purposes. Since the assessee had utilized the undisbursed balance of ₹ 7.29 crores for working capital requirements, the same was ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in the year 1999 towards the terminal benefits of the employees can be treated as trading receipts in subsequent assessment years. 7. We, therefore, for the reasons recorded above, set aside the order of the CIT(A) and allow the appeal of the assessee. Order pronounced in the open court at the time of hearing on Tuesday, the 25th day of September, 2012 at Chennai. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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