- (1.) The assessee carries on the business inter alia, of construction, generation, operation and maintenance of thermal power stations and associated transmission network.
(2.) During the Assessment Year 1978-79 the assessee had deposited its funds which were not immediately required, on short-term deposits with banks. Interest received on such deposits during the previous year relevant to the Assessment Year 1978-79 amounted to Rs. 22,84,994. 00. This was offered by the assessee for tax assessment and the assessment was completed on that basis. Before the Commissioner of Income Tax (Appeals) a number of grounds were taken by the assessee challenging the assessment. However, the inclusion of this amount of Rs. 22,84,994. 00 was neither challenged by the assessee nor considered by the Commissioner of Income Tax (Appeals). From the order of the Commissioner of Income Tax (Appeals) the assessee filed an appeal before the tribunal. The inclusion of the said amount of rs 22,84,994 was not objected to even in the grounds of appeal as originally filed before the tribunal. However, by a forwarding letter dated 16/7/1983 the following additional grounds were sought to be raised by the assessee: 1. The sum of Rs. 22,84,994. 00 deducted from "statement of expenditure during construction" cannot be included in the total income. 2. It is contended that on admission (erroneous) , no income (the sum of Rs. 22,84,994. 00 can be included in the total income. 3. The authorities below have erred and failed in their duty in not adjudicating the facts and evidence on record and mechanically including Rs. 22,84,994. 00 in the total income.
(3.) The assessee contended that on account of two orders of special benches of the tribunal in the cases of Arasan Aluminium Industries (P) ltd. and Nagarjuna Steels Ltd. the assessee learnt that the interest earned in this manner before the setting up of business is not taxable as income and it goes to reduce the capital cost of the plant. On learning about this legal position the assessee sought to include the above three grounds in its grounds of appeal. The tribunal has declined to entertain these additional grounds.;