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TMI Blog2023 (9) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... oreign currency loan, not immediately required for business activities, in fixed deposits and earned interest income - After netting of the interest income against the interest cost, the assessee declared finance cost - While examining the issue in course of assessment proceedings, the AO was of the view that the interest income earned on the FDRs has to be treated as income from other sources, as it is not related to assessee s business activities. Following the decision taken by him in assessee s case in assessment years 2012-13 and 2013-14, the Assessing Officer added the interest income as income from other sources. The assessee contested the aforesaid addition before Commissioner (appeals). Having taken note of the fact that the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessment year. Accordingly, we uphold the decision of learned Commissioner (Appeals). Appeal of revenue dismissed. - SHRI SAKTIJIT DEY, VICE-PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER For the Assessee by : Ms. Kavita Jha, Advocate Sh. Himanshu Agarwal, Adv. For the Revenue by : Ms. Sapna Bhatia, CIT- DR ORDER PER SAKTIJIT DEY, V.P.: This is an appeal by the Revenue against order dated 20.02.2020 of learned Commissioner of Income-tax (Appeals)-32, New Delhi pertaining to assessment year 2014-15. 2. Effective grounds raised by the Revenue are as under : 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred in facts law of the case in allowing capitalization of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits and earned interest income of Rs. 4.48 crores. After netting of the interest income against the interest cost, the assessee declared finance cost at Rs. 9.39 crores. While examining the issue in course of assessment proceedings, the Assessing Officer was of the view that the interest income earned on the FDRs has to be treated as income from other sources, as it is not related to assessee s business activities. Following the decision taken by him in assessee s case in assessment years 2012-13 and 2013-14, the Assessing Officer added the interest income as income from other sources. The assessee contested the aforesaid addition before learned Commissioner (appeals). Having taken note of the fact that the Tribunal and the Hon ble Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... air market value (FMV) of shares. Alleging that the assessee failed to provide FMV of shares, the Assessing Officer added back the amount of Rs. 45,97,44,964/- under section 56(viia)(ii) of the Act. The assessee contested the aforesaid addition before learned first appellate authority. Before the first appellate authority, the assessee argued that the provisions of section 56(viia)(ii) are not applicable as the assessee has not received any shares during the year. Without prejudice, the assessee submitted that as per section 56(2)(viib), the assessee can value shares at its own option as per Rule 11UA. The assessee submitted that as per the discounted cash flow method (DCF), the value at which the shares were sold with premium is as per FMV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee for valuation of share was found as per FMV. The aforesaid factual findings of the first appellate authority remain uncontroverted before us, as the Revenue has failed to bring on record any contrary material. Another pertinent fact, which the learned Commissioner (Appeals) has rightly observed, is, the share application money was received in financial year 2012-13 and the terms and conditions of allotment were also decided in the said year. Therefore, no addition can be made in the impugned assessment year. Thus, for the aforesaid reasons, we do not find any merit in the ground raised. Accordingly, we uphold the decision of learned Commissioner (Appeals). 8. In the result, appeal is dismissed. Order pronounced in the open cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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