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Income Tax Appellate Tribunal, MUMBAI BENCH “A” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
These appeals by the assessee are directed against two separate orders both dated 20.03.2023, passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2014-15 and 2015-16 respectively. As the issue in dispute involved in both these appeals being identical, same were heard together and disposed off by way of this consolidated order for sake of convenience.
M/s Aditya Vikram Birla Memorial Trust 2 M/s Aditya Vikram Birla Memorial Trust ITA No.
2. The grounds raised in assessment year 2014 The grounds raised in assessment year 2014 The grounds raised in assessment year 2014-15 are reproduced as under: reproduced as under:
On the facts and circumstances of the case and in law, On the facts and circumstances of the case and in law, On the facts and circumstances of the case and in law, the Hon’ble CIT(A) erred in co the Hon’ble CIT(A) erred in confirming addition made by nfirming addition made by the the the AO AO AO to to to the the the total total total income income income amounting amounting amounting to to to Rs.8,84,34,774/ Rs.8,84,34,774/-.
2. The Hon’ble CIT(A), inter The Hon’ble CIT(A), inter-alia, failed to appreciate and alia, failed to appreciate and ought to have held that for recognizing interest income, ought to have held that for recognizing interest income, ought to have held that for recognizing interest income, the appellant is consistently following the cash system the appellant is consistently following the cash system the appellant is consistently following the cash system of accounting and hence, such interest is correctly not f accounting and hence, such interest is correctly not f accounting and hence, such interest is correctly not offered to sale. offered to sale. 3. The appellant can follow receipt/cash basis accounting The appellant can follow receipt/cash basis accounting The appellant can follow receipt/cash basis accounting for the aforesaid interest. for the aforesaid interest. 3. The grounds raised in assessment year 2015 The grounds raised in assessment year 2015 The grounds raised in assessment year 2015-16 are reproduced as under: as under:
GROUND NO. I: ADDITION ON GROUND NO. I: ADDITION ON ACCOUNT OF INTEREST ACCOUNT OF INTEREST ACCRUED NUT NOT RECEIVED OF RS. 13.95,88.077/ ACCRUED NUT NOT RECEIVED OF RS. 13.95,88.077/ ACCRUED NUT NOT RECEIVED OF RS. 13.95,88.077/-:
1. 1. On the facts and circumstances of the case and in law, the 1. On the facts and circumstances of the case and in law, the 1. On the facts and circumstances of the case and in law, the Hon'ble CIT(A) erred in confirming addition made by the Id. AO Hon'ble CIT(A) erred in confirming addition made by the Id. AO Hon'ble CIT(A) erred in confirming addition made by the Id. AO to the total income amounting to Rs. to the total income amounting to Rs. 13,95,88.077/ 13,95,88.077/-.
2. The Hon'ble CIT(A), inter n'ble CIT(A), inter-alia, failed to appreciate and ought alia, failed to appreciate and ought to have held that for recognizing the disputed interest income, to have held that for recognizing the disputed interest income, to have held that for recognizing the disputed interest income, the Appellant is consistently following the cash system of the Appellant is consistently following the cash system of the Appellant is consistently following the cash system of accounting and hence, such interest is correctly not offered for accounting and hence, such interest is correctly not offered for accounting and hence, such interest is correctly not offered for sale accrual but on receipt. l but on receipt.
3. The Appellant can follow receipt /cash basis accounting for 3. The Appellant can follow receipt /cash basis accounting for 3. The Appellant can follow receipt /cash basis accounting for the aforesaid interest. the aforesaid interest.
4. Without Prejudice to above, the Appellant prays that the 4. Without Prejudice to above, the Appellant prays that the 4. Without Prejudice to above, the Appellant prays that the same income should not be taxed twice due to difference in same income should not be taxed twice due to difference in same income should not be taxed twice due to difference in method of accounting followed by method of accounting followed by the Appellant and the the Appellant and the department and hence, appropriate directions be given to department and hence, appropriate directions be given to department and hence, appropriate directions be given to eliminate double taxation of same income. eliminate double taxation of same income.
M/s Aditya Vikram Birla Memorial Trust 3 M/s Aditya Vikram Birla Memorial Trust ITA No.
Briefly stated, facts of the case are that the assessee is a Briefly stated, facts of the case are that the assessee is a Briefly stated, facts of the case are that the assessee is a charitable trust registered with the Charity Commissioner under charitable trust registered with the Charity Commissioner under charitable trust registered with the Charity Commissioner under the Maharashtra Public Trust Act and also registered u/s 12A of harashtra Public Trust Act and also registered u/s 12A of harashtra Public Trust Act and also registered u/s 12A of the Income-tax Act, 1961 (in short ‘the Act’) vide Registration tax Act, 1961 (in short ‘the Act’) vide Registration tax Act, 1961 (in short ‘the Act’) vide Registration granted by the DIT(E), Mumbai dated 10.10.1996. In the return of granted by the DIT(E), Mumbai dated 10.10.1996. In the return of granted by the DIT(E), Mumbai dated 10.10.1996. In the return of income filed for the respective assessment years i.e. assessment income filed for the respective assessment years i.e. asses income filed for the respective assessment years i.e. asses year 2014-15 and 2015 15 and 2015-16, the interest income which had accrued he interest income which had accrued to the assessee, was not taken into account while computing total was not taken into account while computing total was not taken into account while computing total income for the previous year relevant to the assessment year 2014- income for the previous year relevant to the assessment year 2014 income for the previous year relevant to the assessment year 2014 15 and 2015-16. It was submitted by the assessee before the 16. It was submitted by the assessee before the 16. It was submitted by the assessee before the Assessing Officer that the assessee was following cash basis of the ssing Officer that the assessee was following cash basis of the ssing Officer that the assessee was following cash basis of the accounting for the purpose of the interest income. The Assessing accounting for the purpose of the interest income. The Assessing accounting for the purpose of the interest income. The Assessing Officer rejected the contention of the assessee and held that the Officer rejected the contention of the assessee and held Officer rejected the contention of the assessee and held interest income of Rs.8,84,34,774/ interest income of Rs.8,84,34,774/- for AY 2014-15 and interest 15 and interest income of Rs.13,93,88,077/ income of Rs.13,93,88,077/- for assessment year 2015 for assessment year 2015-16 as income of the assessee income of the assessee in the respective assessment in the respective assessment years. On further appeal, the Ld. CIT(A) upheld the accrual basis of further appeal, the Ld. CIT(A) upheld the accrual basis of further appeal, the Ld. CIT(A) upheld the accrual basis of assessment of interest income. In the assessment assessment of interest income. In the assessment year 2014 year 2014-15, the Assessing Officer reduced the Officer reduced the interest income which was assessed interest income which was assessed on accrual basis in immediately preceding accrual basis in immediately preceding assessment year i.e. assessment year i.e. assessment year 2013 assessment year 2013-14, but shown on cash basis in the relevant on cash basis in the relevant assessment year. But in assessment year 2015 assessment year. But in assessment year 2015-16, no , no such benefit of interest income assessed on accrual basis in earlier year was of interest income assessed on accrual basis in earlier of interest income assessed on accrual basis in earlier given.
M/s Aditya Vikram Birla Memorial Trust 4 M/s Aditya Vikram Birla Memorial Trust ITA No.
We have heard rival submission of the parties on the issue in We have heard rival submission of the parties on the issue in We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. We find that dispute and perused the relevant material on record. We find that dispute and perused the relevant material on record. We find that the issue in dispute in the gro the issue in dispute in the grounds raised is whether the interest unds raised is whether the interest income accrued in respect of properties held by the assessee should income accrued in respect of properties held by the assessee should income accrued in respect of properties held by the assessee should be included into the income of the year under consideration or not. be included into the income of the year under consideration or not. be included into the income of the year under consideration or not. The provisions of the Act i.e. Explanation below section 11(1) of the The provisions of the Act i.e. Explanation below section 11(1) of the The provisions of the Act i.e. Explanation below section 11(1) of the Act provides for a situation when interest income though accrued it or a situation when interest income though accrued it or a situation when interest income though accrued it has not been received in the year under consideration in such has not been received in the year under consideration in such has not been received in the year under consideration in such cases, the conditions for the application of the income has been cases, the conditions for the application of the income has been cases, the conditions for the application of the income has been relaxed and assessee has been given option to consider the said relaxed and assessee has been given option to consider the said relaxed and assessee has been given option to consider the said income for application either in the immediately succeeding year of application either in the immediately succeeding year of application either in the immediately succeeding year of accrual or previous year in which income is received. For exercising accrual or previous year in which income is received. For exercising accrual or previous year in which income is received. For exercising such an option the assessee is required to intimate the Assessing such an option the assessee is required to intimate the Assessing such an option the assessee is required to intimate the Assessing Officer before the expiry of the time allowed Officer before the expiry of the time allowed under section 139 for filing the return of income. In the case, the assessee did not the return of income. In the case, the assessee did not the return of income. In the case, the assessee did not exercise such an option and therefore the Assessing Officer treated exercise such an option and therefore the Assessing Officer treated exercise such an option and therefore the Assessing Officer treated the interest accrued for the purpose of computing income for the interest accrued for the purpose of computing income for the interest accrued for the purpose of computing income for relevant years. The Ld. CIT(A) has given identical finding in both the relevant years. The Ld. CIT(A) has given identical finding i relevant years. The Ld. CIT(A) has given identical finding i assessment years. For ready reference assessment years. For ready reference, the finding of the Ld. CIT(A) the finding of the Ld. CIT(A) for assessment year 2014 for assessment year 2014-15 is reproduced as under: 15 is reproduced as under:
“3.2.1 It is observed from the appellant's audited accounts, 3.2.1 It is observed from the appellant's audited accounts, 3.2.1 It is observed from the appellant's audited accounts, more particularly the disclosure provided in the accounts more particularly the disclosure provided in the accounts more particularly the disclosure provided in the accounts towards "Significant Accounting Policies and Notes to ds "Significant Accounting Policies and Notes to ds "Significant Accounting Policies and Notes to Accounts" that the financial statements have been prepared Accounts" that the financial statements have been prepared Accounts" that the financial statements have been prepared on accrual basis and there has been no stipulation therein as on accrual basis and there has been no stipulation therein as on accrual basis and there has been no stipulation therein as to the cash basis of accounting followed for interest income. to the cash basis of accounting followed for interest income. to the cash basis of accounting followed for interest income. The principles of genera The principles of general commercial accounting require the l commercial accounting require the M/s Aditya Vikram Birla Memorial Trust 5 M/s Aditya Vikram Birla Memorial Trust ITA No. accounting for income as and when the right to receive it is accounting for income as and when the right to receive it is accounting for income as and when the right to receive it is vested in the recipient even though the actual receipt is vested in the recipient even though the actual receipt is vested in the recipient even though the actual receipt is deferred. The appellant has also followed the same principles deferred. The appellant has also followed the same principles deferred. The appellant has also followed the same principles as is evident from the disclosure made as is evident from the disclosure made for significant for significant accounting policies. accounting policies. Legally, it has been well settled by now Legally, it has been well settled by now that a trust enjoys a special status as to its income derived that a trust enjoys a special status as to its income derived that a trust enjoys a special status as to its income derived from the property held under the trust for which general from the property held under the trust for which general from the property held under the trust for which general commercial principles of accountancy is to be applied in commercial principles of accountancy is to be applied in commercial principles of accountancy is to be applied in exclusion of the mandate as provided in section 145 of the Act. clusion of the mandate as provided in section 145 of the Act. clusion of the mandate as provided in section 145 of the Act. It is to be observed that while section 2(45) specifically defines It is to be observed that while section 2(45) specifically defines It is to be observed that while section 2(45) specifically defines total income', the expression used in section 11(1) is 'only total income', the expression used in section 11(1) is 'only total income', the expression used in section 11(1) is 'only income'. Accordingly, it would be incorrect to assign to the income'. Accordingly, it would be incorrect to assign to the income'. Accordingly, it would be incorrect to assign to the word income used in section 11(1)(a) the same meaning as income used in section 11(1)(a) the same meaning as income used in section 11(1)(a) the same meaning as has been specifically assigned to the expression total income' has been specifically assigned to the expression total income' has been specifically assigned to the expression total income' in section 2(45). The CBDT in Circular No. 5P (LXX in section 2(45). The CBDT in Circular No. 5P (LXX in section 2(45). The CBDT in Circular No. 5P (LXX-6). dated 19.06.1968 has also adopted the same approach. This 19.06.1968 has also adopted the same approach. This 19.06.1968 has also adopted the same approach. This predicates the necessity of predicates the necessity of adopting the general commercial adopting the general commercial principles for computation of income of the trust. The method principles for computation of income of the trust. The method principles for computation of income of the trust. The method of computing income of a charitable trust is, thus, different of computing income of a charitable trust is, thus, different of computing income of a charitable trust is, thus, different from that followed in the case of other assessees. from that followed in the case of other assessees. In the case of a trust, it is the commercial conc In the case of a trust, it is the commercial concept of income ept of income which is to be considered and not the income as computed which is to be considered and not the income as computed which is to be considered and not the income as computed under the various heads of income as specified in section 14. under the various heads of income as specified in section 14. under the various heads of income as specified in section 14. In other words, the income for the purpose of section 11 is the In other words, the income for the purpose of section 11 is the In other words, the income for the purpose of section 11 is the income as per the accounts of the trust. It means the incom income as per the accounts of the trust. It means the incom income as per the accounts of the trust. It means the income in the commercial sense, without reference to the heads of the commercial sense, without reference to the heads of the commercial sense, without reference to the heads of income specified in section 14, i.e., the book income and not income specified in section 14, i.e., the book income and not income specified in section 14, i.e., the book income and not the total income as defined in section 2(45). Therefore, in the total income as defined in section 2(45). Therefore, in the total income as defined in section 2(45). Therefore, in computing the income of trust, the provisions of section 145 computing the income of trust, the provisions of section 145 computing the income of trust, the provisions of section 145 cannot have cannot have any application. It may also be observed that the any application. It may also be observed that the sub-section (4) of section 11 specifically lays down the mode section (4) of section 11 specifically lays down the mode section (4) of section 11 specifically lays down the mode of determination of the income of the business undertaking of of determination of the income of the business undertaking of of determination of the income of the business undertaking of a trust. A similar provision is not to be found with regard to a trust. A similar provision is not to be found with regard to a trust. A similar provision is not to be found with regard to the other incomes o the other incomes of the trust. Thus, by an inferential process, f the trust. Thus, by an inferential process, it can be said that the mode of determination in respect of a it can be said that the mode of determination in respect of a it can be said that the mode of determination in respect of a trust is only restricted to the income of the business trust is only restricted to the income of the business trust is only restricted to the income of the business undertaking. Impliedly, the income that has to be computed undertaking. Impliedly, the income that has to be computed undertaking. Impliedly, the income that has to be computed with regard to a trust is one base with regard to a trust is one based on the accounts of the trust d on the accounts of the trust where the accounts are maintained in conformity with the where the accounts are maintained in conformity with the where the accounts are maintained in conformity with the commercial principles of accounting. Thus, the issue as commercial principles of accounting. Thus, the issue as commercial principles of accounting. Thus, the issue as regards the computation of income needs to be understood in regards the computation of income needs to be understood in regards the computation of income needs to be understood in exclusion of the heads of income specified in sectio exclusion of the heads of income specified in sectio exclusion of the heads of income specified in section 14 and in M/s Aditya Vikram Birla Memorial Trust 6 M/s Aditya Vikram Birla Memorial Trust ITA No. exclusion to the manner of computation of income as provided exclusion to the manner of computation of income as provided exclusion to the manner of computation of income as provided in Chapter IV of the Act. Even in interpreting the several in Chapter IV of the Act. Even in interpreting the several in Chapter IV of the Act. Even in interpreting the several provisions of the Act, wherever the expression provisions of the Act, wherever the expression 'income' occurs, 'income' occurs, there has been some divergence in the meaning given to that there has been some divergence in the meaning given to that there has been some divergence in the meaning given to that expression on account of the particular context involved. In the expression on account of the particular context involved. In the expression on account of the particular context involved. In the context of section 11, which contemplates application or context of section 11, which contemplates application or context of section 11, which contemplates application or accumulation of income for charitable or religious purpose, it accumulation of income for charitable or religious purpose, it accumulation of income for charitable or religious purpose, it has necessarily to be the income as accounted for in the has necessarily to be the income as accounted for in the has necessarily to be the income as accounted for in the accounts and n accounts and not as computed under the Act. Moreover, ot as computed under the Act. Moreover, wherever the statute contemplated the income being computed wherever the statute contemplated the income being computed wherever the statute contemplated the income being computed in the manner set out in the provisions of the Act, appropriate in the manner set out in the provisions of the Act, appropriate in the manner set out in the provisions of the Act, appropriate words are used. Such is not the case with section 11(1). words are used. Such is not the case with section 11(1). words are used. Such is not the case with section 11(1). Hence, income from the properties h Hence, income from the properties held under trust would eld under trust would have to be arrived at in the normal commercial manner have to be arrived at in the normal commercial manner have to be arrived at in the normal commercial manner without reference to the provisions which are attracted by without reference to the provisions which are attracted by without reference to the provisions which are attracted by section 14 of the Act. section 14 of the Act. 3.2.2 For all the reasons elucidated in para 3.2.1 above, I am 2.2 For all the reasons elucidated in para 3.2.1 above, I am 2.2 For all the reasons elucidated in para 3.2.1 above, I am of the considered view that the app of the considered view that the appellant's reliance upon the ellant's reliance upon the provisions of section 145 in respect of provisions of section 145 in respect of accounting for interest accounting for interest and computation of income thereof is bereft of any merits and and computation of income thereof is bereft of any merits and and computation of income thereof is bereft of any merits and hence, it is rejected. The said interest income has to be hence, it is rejected. The said interest income has to be hence, it is rejected. The said interest income has to be computed on normal commercial principles whic computed on normal commercial principles whic computed on normal commercial principles which mandates recognition of income whenever there is a right to receive it. In recognition of income whenever there is a right to receive it. In recognition of income whenever there is a right to receive it. In the case on hand, the income by way of interest of the case on hand, the income by way of interest of the case on hand, the income by way of interest of Rs.8,84,34,774/ Rs.8,84,34,774/- has rightly accrued to the appellant trust has rightly accrued to the appellant trust during the previous year during the previous year 2013-14 which is evident from the 14 which is evident from the accrual method of accounting followed by the appellant, and ethod of accounting followed by the appellant, and ethod of accounting followed by the appellant, and the disclosure made towards "Significant Accounting Policies the disclosure made towards "Significant Accounting Policies the disclosure made towards "Significant Accounting Policies and Notes to Accounts" testifies to this fact. Therefore, the AO and Notes to Accounts" testifies to this fact. Therefore, the AO and Notes to Accounts" testifies to this fact. Therefore, the AO has rightly held it to be income derived from the property held has rightly held it to be income derived from the property held has rightly held it to be income derived from the property held under the trust under the trust in relation to the previous year in relation to the previous year 2013-14 relevant to AY 2014 relevant to AY 2014-15.” 3.1 In our opinion as far as the interest In our opinion as far as the interest receipt for the purpose of for the purpose of income is concerned, income is concerned, the Ld CIT(A) following commercial principle of the Ld CIT(A) following commercial principle of recognising income treated the interest income as taxable on recognising income treated the interest income as t recognising income treated the interest income as t accrual basis. The finding of the ld CIT(A) is well reasoned and we accrual basis. The finding of the ld CIT(A) is well reasoned and accrual basis. The finding of the ld CIT(A) is well reasoned and do not find any error in the order of the Ld. CIT(A) on the issue in do not find any error in the order of the Ld. CIT(A) on the issue in do not find any error in the order of the Ld. CIT(A) on the issue in M/s Aditya Vikram Birla Memorial Trust 7 M/s Aditya Vikram Birla Memorial Trust but as far as application of the said interest income is dispute but as far as application of the said interest income is dispute but as far as application of the said interest income is concerned, there is there is only a technical breach on the part of the on the part of the assessee and therefore such application assessee and therefore such application could be considered as per be considered as per the provisions of Explanation b the provisions of Explanation below the section 11. Since, no such elow the section 11. Since, no such plea has been made before plea has been made before us for the application the application of income and therefore, we are not adjudicating upon therefore, we are not adjudicating upon the same. As far as giving the same. As far as giving benefit or credit of the income assessed on accrual basis in earlier benefit or credit of the income assessed on accrual basis in earlier benefit or credit of the income assessed on accrual basis in earlier years , which show shown by the assessee on cash basis in the the assessee on cash basis in the subsequent assessment year subsequent assessment year, the Ld. CIT(A) in assessment year the Ld. CIT(A) in assessment year 2014-15 has held as under: 15 has held as under:
“4.1 Apropos 4.1 Apropos the above, it is submitted by the the above, it is submitted by the appellant that as per the method of appellant that as per the method of accounting accounting followed by it, the appellant had offered income from followed by it, the appellant had offered income from followed by it, the appellant had offered income from interest interest interest on on on receipt receipt receipt basis basis basis amounting amounting amounting to to to Rs.3,64,87,862/ Rs.3,64,87,862/- in in the the current current AY AY 2014-15. 2014 Although the AO has already taxed it i Although the AO has already taxed it in the preceding n the preceding AY 2013-14 on accrual basis of interest income after 14 on accrual basis of interest income after 14 on accrual basis of interest income after negating the appellant's accounting for interest on negating the appellant's accounting for interest on negating the appellant's accounting for interest on receipt basis, yet the AO has not excluded the same receipt basis, yet the AO has not excluded the same receipt basis, yet the AO has not excluded the same amount in the current year's assessment of the total amount in the current year's assessment of the total amount in the current year's assessment of the total income. It is, thus, submitted income. It is, thus, submitted by the appellant that by the appellant that the action of the A is tantamount to double taxation of the action of the A is tantamount to double taxation of the action of the A is tantamount to double taxation of the same income. first in AY 2013 the same income. first in AY 2013-14 and then in AY 14 and then in AY 2014-15. 4.2 After due consideration of facts of the case, the After due consideration of facts of the case, the After due consideration of facts of the case, the contentions of the appellant are found to be correct. contentions of the appellant are found to be correct. contentions of the appellant are found to be correct. The above interest of Rs. 3,64,87,8621 e interest of Rs. 3,64,87,8621- accrued to accrued to the appellant in the previous year 2012 the appellant in the previous year 2012-13 (AY 2013 13 (AY 2013- 14) but was received in the previous year 2013 14) but was received in the previous year 2013 14) but was received in the previous year 2013-14 (AY 2014-15), and the appellant has shown it as its 15), and the appellant has shown it as its 15), and the appellant has shown it as its income for AY income for AY 2014-15 on receipt basis. It is observed 15 on receipt basis. It is observed that while making the assessment for AY while making the assessment for AY 2013 2013-14, the AO has assessed it as income for AY 2013 the AO has assessed it as income for AY 2013-14 on 14 on accrual basis. accrual basis. However, the AO has not excluded it in However, the AO has not excluded it in M/s Aditya Vikram Birla Memorial Trust 8 M/s Aditya Vikram Birla Memorial Trust ITA No. the assessment made for the current AY the assessment made for the current AY 2014 2014-15. This is, thus, an instance of double taxation of the This is, thus, an instance of double taxation of the This is, thus, an instance of double taxation of the same income which cannot be countenanced under income which cannot be countenanced under income which cannot be countenanced under law. 4.2.1 In view of the above and for decision rendered 4.2.1 In view of the above and for decision rendered 4.2.1 In view of the above and for decision rendered on Ground No. I above, the contentions of the on Ground No. I above, the contentions of the on Ground No. I above, the contentions of the appellant are accepted. The AO is, therefore, directed appellant are accepted. The AO is, therefore, directed appellant are accepted. The AO is, therefore, directed to exclude the interest income of Rs.3,64,87,862/ to exclude the interest income of Rs.3,64,87,862/ to exclude the interest income of Rs.3,64,87,862/- which has been assessed in AY 2013 h has been assessed in AY 2013-14 from the 14 from the computation of income for the current AY 2014 computation of income for the current AY 2014 computation of income for the current AY 2014-15. Consequently, the Ground No. II (including the sub Consequently, the Ground No. II (including the sub Consequently, the Ground No. II (including the sub- Grounds 1, 2 and 3) is allowed. Grounds 1, 2 and 3) is allowed.” 3.2 Before us, the Ld. Counsel of the assessee submitted that Before us, the Ld. Counsel of the assessee submitted that Before us, the Ld. Counsel of the assessee submitted that identical benefit has not been granted by the Ld. CIT(A) in has not been granted by the Ld. CIT(A) in has not been granted by the Ld. CIT(A) in assessment year 2015 assessment year 2015-16. Before us, the Ld. Counsel of the 16. Before us, the Ld. Counsel of the assessee has filed a computation of the total income for assessment assessee has filed a computation of the total income for assessment assessee has filed a computation of the total income for assessment year 2016-17. It is settled law that same income cannot be 17. It is settled law that same income cannot be 17. It is settled law that same income cannot be subjected to assessment twi subjected to assessment twice therefore, we hold that irrespective of ld that irrespective of the method of accounting followed by the assessee if particular the method of accounting followed by the assessee if particular the method of accounting followed by the assessee if particular amount of interest income has been assessed by the Assessing amount of interest income has been assessed by the Assessing amount of interest income has been assessed by the Assessing Officer on accrual basis in one assessment year accrual basis in one assessment year, then same then same interest amount shall not be not be assessed in the subsequent assessment year assessed in the subsequent assessment year on cash basis. Accordingly on cash basis. Accordingly, we direct the Ld. Assessing Officer to we direct the Ld. Assessing Officer to give benefit of the interest income which has been assessed on give benefit of the interest income which has been assessed on give benefit of the interest income which has been assessed on accrual basis in assessment year 2015 accrual basis in assessment year 2015-16 and should be excluded should be excluded for taking into consideration for the purpose of the income on cash sideration for the purpose of the income on cash sideration for the purpose of the income on cash basis in subsequent assessment year basis in subsequent assessment year i.e. assessment year 2016 assessment year 2016-17 and onwards. The grounds and onwards. The grounds of appeal for assessment of appeal for assessment year 2014-15 M/s Aditya Vikram Birla Memorial Trust 9 M/s Aditya Vikram Birla Memorial Trust dismissed whereas grounds for assessment year 2015-16 are are dismissed whereas grounds for assessment year 2015 are dismissed whereas grounds for assessment year 2015 accordingly partly allowed. y allowed.
In the result, the appeal of the assessee for AY 2014 the appeal of the assessee for AY 2014 the appeal of the assessee for AY 2014-5 is dismissed whereas the appeal for the AY 2015 dismissed whereas the appeal for the AY 2015-16 is partly allowed. 16 is partly allowed.