In DCIT Vs. M/s Beas Valley Corporation Ltd., the ITAT Chandigarh held that the interest from Bank deposits prior to the period of commencement of the business is Capital receipt. It further allowed the assesses’ claim to set off the interest so received on short term deposit during the year on the loan received against the interest payable on PFC loan so as to reduce the cost of project. Assessee, Beas Valley Power is a Government Company promoted by HPSEBL to execute the 100 MW UHL Stage -III in Joginder Nagar Distt. Mandi. While completing the assessment against the assessee- Company, the AO noted that the interest on bank deposits earned by the Company before the commencement of business is a taxable income and should have be shown under the head ” Income from other sources”. Article referred: http://www.taxscan.in/interest-bank-deposits-prior-period-commencement-business-capital-receipt-itat-chandigarh/8515/
In ACIT v. M/s.Nokia Siemens Networks (P) Ltd, the Delhi ITAT held that assessee cannot be treated as Assessee-in-Default for Late payment of TDS due to system and connectivity issues at the bankers’ end. In the instant case, assessee was held as assessee-in-default for delay in deposit of TDS. Assessee maintained that the amount of TDS was debited from the bank account of the assessee on the due date i.e. 7.10.2009 and the delay in deposit of such tax by a day was on account of system and connectivity issues at the bankers’ end, which were beyond the control of the assessee. On appeal, the first appellate authority held in favour of assessee. However, it confirmed the levy of interest for late payment of TDS. Both the assessee and the Revenue preferred appeals against the order. Before the Tribunal, the Revenue contended that the first appellate authority erred in holding in favour of the assessee in view of the decision of the Supreme Court in the case of CIT Vs. Ogale Glass Work