Pr. Commissioner Of Income Tax-6,New Delhi v. Ntpc Electric Supply Company Ltd

$~2 *IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA No. 511/2017 PR. COMMISSIONER OF INCOME TAX-6,NEW DELHI ..... AppellantThrough:Mr. Asheesh Jain, Senior StandingCounsel. versus NTPC ELECTRIC SUPPLY COMPANY LTD. ..... RespondentThrough:Mr. Ved Jain, Mrs. Rano Jain and Mr.Pranjal Srivastava, Advocates. CORAM:JUSTICE S.MURALIDHARJUSTICE PRATHIBA M. SINGH O R D E R%22.08.2017 1. This is an appeal under Section 260A of the Income Tax Act, 1961(‘Act’) by the Revenue directed against the order dated 11[th]January 2017passedbytheIncomeTaxAppellateTribunal(‘ITAT’)inITANo.240/Del/2013 for the Assessment Year (‘AY’) 2009-10. 2. The question of law urged by the Revenue is whether the ITAT erred inlaw 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 incomewas earned by the Assessee on the deposit of advances received from RECLtd. for Rajiv Gandhi Gramin Vidyutikaran Yojana (‘RGGVY’). A ITA 511/2017 Memorandum of Understanding (‘MOU’) was signed on 16[th]August 2004between REC and the Assessee whereby inter alia it was agreed that interestearned on the deposits would be used as part of the cost of the projects andno other purpose. 4. In the circumstances, the view taken by the CIT (A) and affirmed by theITAT, does not suffer from legal infirmity so as to give rise to anysubstantial question of law. 5. The appeal is dismissed. S. MURALIDHAR, J. AUGUST 22, 2017dk PRATHIBA M. SINGH, J. ITA 511/2017