9911796707
TMI Blog2022 (7) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... ls were heard together, therefore, for the sake of convenience a consolidated order is being passed. The Grounds taken by the Revenue in ITA No. 331/Lkw/2020, which was argued first, read as under: "1. The Ld. CIT(A). Lucknow had erred in law, and facts in deleting the addition of Rs. 17,13,85,262/- on account of interest income without appreciating the fact that the assessee had claimed TDS deducted by the bank on interest Income received from the FDRs and S.B. Accounts, the FDRs and SB Accounts are in the name of the assessee, but the assessee had not shown interest income in its total income, which is against the provision of section 198 and 199 of the Income Tax Act. 2. The Ld. CTT(A), Lucknow had erred in law and facts ignoring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciating the fact that the assessing officer made addition for not following percentage completion method for revenue recognition as given in Accounting Standard AS-7 (Revised) and also, the assessee is deducting amounts from profit and crediting in retention reserve without any justification." ITA No. 331/Lkw/2020 (A.Y. 2016-17) 4. First we will deal with the Grounds of appeal taken by the Revenue in ITA No. 331/Lkw/2020. 5. The assessee had debited provision for interest on unutilized fund at Rs.17,13,85,262/- in its P&L account. The AO observed that the interest is allowable on actual payment against a loan or borrowing; that provision of interest is not an allowable expenditure under the Income Tax Act; that the assessee did not actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived from the Government for executing civil contract work, which interest was the income of the U.P. Government as per U.P. Government Office order dated 02.03.1998; that it is this decision of the Tribunal in the Assessee's case, which has rightly been followed by the CIT(A), under similar facts. 8. It remains undisputed that the U.P. Government, vide G.O. No.B-1/564/10- 7/97, dated 02.03.1998, specifically mentioned that whatever interest income accrues on the advances from the bank, would be remitted to the Government by the assessee. The assessee is a Government Company. It has been declared as a construction agency for Government works. It gets advance for execution of construction projects on behalf of the U.P. State Government. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No. 374/Lkw/2020 (A.Y. 2015-16) 11. Ground Nos. 1 and 2 have been raised against the ld. CIT(A)'s action of deletion of addition of Rs.57,96,84,591/- on account of interest income. 12. This issue is exactly similar to the one raised in ITA No. 331/Lkw/2020 (Supra) and our findings recorded with regard thereto are squarely applicable, mutatis mutandis, herein also. Following our findings in ITA No. 331/Lkw/2020, Ground Nos. 1 and 2 are rejected. 13. The AO made the addition of Rs.2,98,05,040/- for the reason that the amount claimed as bad debts was never included by the assessee in the debtors and the same, as per the AO, did not qualify to be considered for deduction as bad debts. Ground No. 3 has been raised since the ld. CIT(A) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount was treated as bad debts and reduced from the income of the assessee. Accordingly, Ground No.3 is also found to be shorn of merit and the same is rejected. ITA No. 291/Lkw/2020 (A.Y. 2009-10) 17. Apropos the sole Ground taken by the Revenue in ITA No. 291/Lkw/2020, the AO added an amount of Rs.15,01,87,602/-, observing that the assessee was deducting profit from work-in-progress and was crediting it to Retention Reserve; that the assessee was required to prepare its profit and loss account as per AS-7 (Revised); that the assessee was not following AS-7 (Revised) and Revenue recognition was not as per AS-7(Revised); that the assessee was deducting profit from value of work done without justification and was crediting the profit to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
