Pr. Commissioner of Income-tax-6, New Delhi v. NTPC Electric Supply Company Ltd
[Citation -2017-LL-0822-6]
| Citation | 2017-LL-0822-6 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax-6, New Delhi |
| Respondent Name | NTPC Electric Supply Company Ltd. |
| Court | HIGH COURT OF DELHI AT NEW DELHI |
| Relevant Act | Income-tax |
| Date of Order | 22/08/2017 |
| Assessment Year | 2009-10 |
| Judgment | View Judgment |
| Keyword Tags | memorandum of understanding • interest earned • interest income • legal infirmity • question of law • interest on deposit • advance money received |
| Bot Summary: | This is an appeal under Section 260A of the Income Tax Act, 1961 by the Revenue directed against the order dated 11th January 2017 passed by the Income Tax Appellate Tribunal in ITA No.240/Del/2013 for the Assessment Year 2009-10. The question of law urged by the Revenue is whether the ITAT erred in law in holding that taxability of interest income of 19,87,59,407/- will depend upon subsequent use of the interest income 3. The undisputed fact, as noted by the ITAT, is that the said interest income was earned by the Assessee on the deposit of advances received from REC Ltd. for Rajiv Gandhi Gramin Vidyutikaran Yojana. A ITA 511/2017 Page 1 of 2 Memorandum of Understanding was signed on 16th August 2004 between REC and the Assessee whereby inter alia it was agreed that interest earned on the deposits would be used as part of the cost of the projects and no other purpose. In the circumstances, the view taken by the CIT and affirmed by the ITAT, does not suffer from legal infirmity so as to give rise to any substantial question of law. |