9911796707
TMI Blog2022 (11) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... at the fixed deposits kept with banks are in connection with the business activity of the assessee. That being the factual position emerging on record, the interest income earned has a direct nexus with the business activity of the assessee. In that view of the matter, the interest income earned by the assessee has to be treated as income from business and can be set off against the cost of construction. There is no doubt that the interest income pertained to the impugned assessment year and the concerned banks have deducted tax at source while crediting the interest income to the account of the assessee. The only reason on which the departmental authorities have rejected to grant refund of the TDS amount is, the interest income has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year under dispute, the assessees filed their return of income declaring NIL income and claiming refund of the tax deducted at source (TDS). While processing the return of income, the Centralised Processing Centre (CPC), Bangalore rejected assessee s claim of refund citing mismatch between the return of income and Form 26AS. Against the intimation issued under section 143(1) of the Act rejecting the claim of refund, assesses preferred appeals before learned Commissioner (Appeals). Before the first appellate authority, the assessees contended that as per the terms of the concession agreement with FCI, the assessees have to furnish bank guarantee and for obtaining bank guarantee, the assessees have to keep certain amount as fixed d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... securities by way of fixed deposits. Thus, it cannot be denied that the fixed deposits kept with banks are in connection with the business activity of the assessee. That being the factual position emerging on record, the interest income earned has a direct nexus with the business activity of the assessee. In that view of the matter, the interest income earned by the assessee has to be treated as income from business and can be set off against the cost of construction. There is no doubt that the interest income pertained to the impugned assessment year and the concerned banks have deducted tax at source while crediting the interest income to the account of the assessee. The only reason on which the departmental authorities have rejected to g ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
