9911796707
TMI Blog2009 (1) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri M. V. Seshachala, learned counsel appeared on behalf of the appellants. 2. Heard on admission. Records perused. 3. The Revenue is in appeal under section 260A of the Income-tax Act, 1961, against the order dated September 7, 2007, passed by the Income-tax Appellate Tribunal, Bangalore Bench "B", in Appeal I. T. A. No. 1106/Bang/06 for the assessment year 2003-04. 4. The appellants had appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided on February 21, 2006. The said judgment has been placed for consideration before us and we have gone through it. Essentially, the Tribunal has also placed reliance on the said judgment and accordingly held in favour of the assessee. 6. We have no doubt in our mind that the said judgment squarely covers the issue involved in this appeal. It has been held by the Division Bench of this court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of infrastructural assets on a continuing basis and, therefore, the assessee is a nodal agency formed/created by the Government of Karnataka as per the guidelines; there is no profit motive as the entire fund entrusted and the interest accrued therefrom on deposits in bank though in the name of the assessee has to be applied only for the purpose of welfare of the nation/States as provided in the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of the Revenue that the assessee was carrying on any business or activities of its own while implementing the scheme in question. The unutilised money, during which the project could not be fully implemented, is deposited in a bank to earn interest. That interest earned is also again utilised for the implementation of the mega city scheme which is also permitted under the scheme. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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