Transmission Corporation of Telangana Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-2(2), Hyderabad

CO 25/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0877 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 21-04-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 16-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. DIPAK
• Assessee Lawyers: M. CHANDRAMOULESWARA RAO
• Keywords: Set aside
• Section: 201; 13; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 458 /H/20 1 8 ASSESSMENT YEAR: 2 0 1 4 - 1 5 TRANSMISSION CORPORATION OF ANDHRA PRADESH LTD., VIJAYAWADA. PAN A ABCP 0088P VS. DY. COMMISSIONER OF INCOME - TAX, CIRCLE 2(2), HYDERABAD. (APPELLANT) (RESPONDENT) ITA NO. 1112 /H/201 9 AND CO NO. 25/H/2019 ASSESSMENT YEAR: 201 6 - 1 7 DY. COMMISSIONER OF INCOME - TAX, CIRCLE 2(2), HYDERABAD. VS. TRANSMISSION CORPORATION OF TELANGANA LTD., HYDERABAD. PAN A AFCT0166J (APPELLANT) (RESPONDENT / CROSS OBJECTOR ) ASSESSEE BY: SHRI M. CHANDRAMOULESWARA RAO REVENUE BY: SHRI R. DIPAK DATE OF HEARING: 21 /0 4/2021 DATE OF PRONOUNCEMENT: 13 /0 7 /2021 O R D E R PER L.P. SAHU, A.M. : TH E S E APPEAL S FILED BY THE ASSESSEE AS WELL AS REVENUE ARE DIRECTED AGAINST CIT(A) - 2 , HYDERABAD S SEPARATE I TA NO S . 458/H/2018 AND OTHERS M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HY D AND ANOTHER. : - 2 - : ORDER S INVOLVING PROCEEDINGS U/S 14 3(3) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT . ASSESSEE ALSO FILED CO FOR AY 2016 - 17 AGAINST THE ORDER OF CIT(A). SINCE COMMON IS SUES ARE INVOLVED IN THESE APPEALS, THE SAME WERE CLUBBED AND HEARD TOGETHER AND THEREFORE A COMMON ORDER IS PASSED FOR THE SAKE OF CONVENIENCE. ITA NO. 458/HYD/2018 FOR AY 2014 - 15 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE M / S. TRANSMISSION CORPORATION OF ANDHRA PRADESH LIMITED IS A 100% AP STATE GOVERNMENT COMPANY. IT IS ENGAGED IN THE BUSINESS OF TRANSMISSION OF ELECTRICITY IN THE STATE OF ANDHRA PRADESH. THE A SSESSEE FI LED ITS IT RETURN FOR THE AY 2014 - 15 ADMITTING A TOTAL INCOME AT RS.200,75,24,350 / - UNDER REGULAR PROVISIONS OF IT ACT AND A BOOK PROFIT AT RS.190,63,96,004J - UNDER THE PROVISIONS OF SEC.115 JB. ASSESSMENT WAS COMPLETED U/S .143(3) DETERMINING THE TOTAL TAX ABLE INCOME AT RS.404,54,20,737 / - BY ADDING BACK AN AMOUNT OF RS. 203,78,96,387 / - TOWARDS THE INTEREST EARNED ON THE FIXED DEPOSITS MADE OUT OF UNUTILIZED LIS FUND. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE ORDE R OF AO. I TA NO S . 458/H/2018 AND OTHERS M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HY D AND ANOTHER. : - 3 - : 4. STILL AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN DISPUTE IS SQUARELY COVERED BY THE DECISION OF ASSESSEES OWN CASE IN ITA NOS. 366 TO 37 2/HYD/2018, FOR AYS 2008 - 09 TO 2013 - 14, ORDER DATED 13/06/2018, WHEREIN THE COORDINATE BENCH IN ASSESSEES OWN CASE CITED SUPRA HELD AS UNDER: 5. AFTER CONSIDERING THE RIVAL CONTENTIONS, WE DO NOT FIND ANY MERIT IN REVENUE GROUNDS. AS CAN BE SEEN, THE FU NDS ARE CLEARLY ALLOCATED FOR A SPECIFIC PURPOSE AND ASSESSEE HAS NO CONTROL OVER THE FUNDS, EXCEPT UTILIZING THEM FOR THE SCHEME FOR WHICH IT WAS GRANTED. THESE FUNDS ARE ALSO KEPT SEPARATELY AND THE INTEREST WAS ALSO ACCOUNTED FOR ON BEHALF OF THE GOVERN MENT AND HAS KEPT SEPARATELY FROM ASSESSEE'S TRANSACTIONS. HENCE, ON THE PRINCIPLES LAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF MIS BOKARO STEEL [236 ITR 315] (SC) AND ALSO RELYING ON VARIOUS CASE LAW ON THE ISSUE, WE ARE OF THE OPINION THAT TH E DECISION OF LD.CIT(A) DOES NOT REQUIRE ANY MODIFICATION. NOTHING WAS PLACED ON RECORD TO COUNTER THE FINDINGS OF CIT(A) BOTH ON FACTS AND ON LAW. IN THE RESULT, ALL THE REVENUE APPEALS ARE DISMISSED. I TA NO S . 458/H/2018 AND OTHERS M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HY D AND ANOTHER. : - 4 - : 5.1. RESPECTFULLY FOLLOWING THE DECISION COORDINATE BENCH IN ASSESSEES OWN CASE CITED SUPRA, WE SET ASIDE THE ORDER OF CIT(A) AND DIRECT THE AO TO DELETE THE ADDITION MADE ON THIS COUNT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ON THIS ISSUE ARE ALLOWED. 6. AS REGARDS THE APPEAL OF THE REVENUE IN ITA NO. 1112/HYD/2019, THE REVENUE IS IN APPEAL BEFORE ITAT AGAINST THE ACTION OF THE CIT(A) IN HOLDING THAT THE INTEREST EARNED FROM FDS BY THE ASSESSEE ON GRANTS ISSUED BY GOAP FOR EXECUTION OF PROJECT IS NOT TAXABLE , FOLLOWING THE DECISION OF THE ITAT I N ASSESSEES OWN CASE CITED SUPRA FOR AYS 2008 - 09 TO 2013 - 14. 7. AFTER CONSIDERING THE SUBMISSIONS OF THE BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD AS WELL AS GOING THROUGH THE ORDERS OF THE REVENUE AUTHORITIES, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) AS THE SAME IS IN CONSONANCE WITH THE DECISION OF THE ITAT FOR EARLIER YERS AND THEREFORE, UPHOLDING THE ORDER OF CIT(A), WE DISMISS THE GROUNDS RAISED BY THE REVENUE ON THIS ISSUE. 8. AS REGARDS THE CO NO. 25/HYY/2019 FILED BY T HE ASSESSEE IN AY 2016 - 17, WE FIND THAT THE CO FILED BY THE ASSESSEE IS IN SUPPORT OF ORDER OF CIT(A). SINCE, WE HAVE I TA NO S . 458/H/2018 AND OTHERS M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HY D AND ANOTHER. : - 5 - : UPHELD THE ORDER OF THE CIT(A), THE CO BECOMES INFRUCTUOUS AND THE SAME IS DISMISSED AS INFRUCTUOUS. 9. IN THE RESULT, APPEAL OF THE A SSESSEE IN ITA NO. 458/HYD/2018 IS ALLOWED AND APPEAL OF THE REVENUE IN ITA NO. 1112/HYD/2019 & CO NO. 25/HYD/2019 FILED BY THE ASSESSEE ARE DISMISSED, IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. PRONOUNCED IN THE OPEN COURT ON 13 TH JU LY , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 13 TH JU LY , 20 2 1 . K V C OPY TO : 1 DCIT, CIRCLE 2(2), ROOM NO. 513, 5 TH FLOOR, SIGNATURE TOWERS, OPP. BOTANICAL GARDEN, KONDAPUR, HYDERABAD 500 084 2 M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HYDERABAD . 3 C I T(A) 2, HYDERABAD. 4 PR. CIT - 2 , HYDERABAD. 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO S . 458/H/2018 AND OTHERS M/S TRANSMISSION CORPORATION OF TELANGANA LTD., HY D AND ANOTHER. : - 6 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER