Angul Sukinda Railway Ltd vs ITO
Assessee is a public limited company which filed its return of income electronically disclosing a loss, however a tax was paid u/s.115JB. The case of the assessee was selected for scrutiny under CASS and statutory notices were issued to the assessee. The AO observed that the assessee has received interest on Fixed Deposits and Flexi Deposits against which the assessee has made provision for income tax. Against the above order of CIT(A) for both the assessment years under consideration, the assessee is in appeals before the Income Tax Appellate Tribunal.
The assessee has deducted the expenses from the interest and surplus has been transferred into the reserve and surplus account. Before the AO the assessee has also offered it as a business income in the form of written submissions, which has been incorporated by the AO in the assessment order. Relying on the case of Haridaspur Paradip Railway Company Ltd. Vs. DCIT, Cuttack ITAT remitted the issue to the file of AO on the same directions given therein along with some additional direction for examination as to whether the income which has been transferred into the reserve and surplus account and its utilization.