, , आयकरअपीलीयअिधकरण इंदौर(cid:586)ायपीठ इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M JOSHI, JUDICIAL MEMBER ITA No.569/Ind/2025 (AY: 1992-93)

Deputy Commissioner of बनाम/ Maral Overseas Ltd.

Income Tax- 4(1) Vs. Maral Srovar, V & PO, Indore Khalbujurg, Kasrawad, Khargone, Bhopal (PAN: AACCM0230B)

(Appellant) (Respondent)

Assessee by Shri Satyajeet Goyal, CA Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 03.02.2026 Date of Pronouncement 27.02.2026 आदेश / O R D E R Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Revenue under section 253 of the income tax Act 1961,[ herein after referred to as the Act for the sake of brevity] before this Tribunal. The Assessee is aggrieved by the order bearing Number:-1045/21-22 dated 22.07.2022 [DR NO.-31/10 D.No.-104] passed by the Ld. CIT(A) u/s 250 of the Act, which is herein after referred to as the “Impugned order”. The relevant assessment year is 1992-93 and the corresponding previous year period is from 01.04.1991 to 31.03.1992.

2. Factual Matrix

2.1 That as and by way of an “ Assessment order” made u/s 143(3) r.w.s. 254 of the Act wherin it was held that the interest amount of Rs. 1,51,54,534/- is income from other sources, [The total loss as per last order passed u/s 143(3)/250 dated 03.11.1999 was at Rs. 1,69,39,343/-]. That the aforesaid assessment order is dated 31.12.2009 which is herein after referred to as the “Impugned Assessment Order”.

2.2 That it is required to be noted that the assessment u/s 143(3)(in this case) was originally made on 08.03.1995. Later on the matter reached to ITAT, Indore Bench in ITA No. 289/IND/02 and the ITAT, Indore Bench vide order dated 16.05.2008 [For this Assessment Year] set aside the Assessment order to re-decide on a particular issue.[Discussed later]

2.3 The core issue in the Assessment was regarding the treatment of the interest received of Rs. 1,51,54,534/- on the proceeds of Public Issue deposited with the Banks. The said interest was received before the commencement of Commercial Production which was offered by the assessee as income from “Other Sources”. However, by way of a Note it was claimed that the interest is “not taxable” & that the same be reduced from the preoperative expenses & accordingly also reduced from the cost of the Assets. This claim was not accepted by the then AO & that he assessed the said interest as “ income from other sources” in an order u/s 143(3). The then Ld. CIT(A) confirmed the action of the Ld. AO. The matter then reached to ITAT, & the ITAT by an order (supra) restored the matter to back to the Ld. AO with certain directions. The submission of the Assessee & gist of the ITAT order dt. 16.05.2008 are recorded in the “Impugned Assessment Order” which is reproduced by us as below:-

“ 3. In these proceedings the company filed a detailed reply which for the sake of clarity is being reproduced here under: -

"The Hon'ble ITAT Indore Bench Indore in ITA No. 289/ IND/ 2002 for AY 1992-93 vide order dated 16.05.2008, has restored to re-decide, in the light of the decision of Hon'ble Supreme Court in the case of Bokaro Steel Ltd. (236 ITR 315) and Kamal Co- operative Sugar Mills Limited (243 ITR 2) as well as in the light of the decision of Hon'ble Madras High Court in the case of VGR Foundation P. Ltd. (2008) 298 ITR 132, the issue of treatment of interest of Rs. 1,51,54,534/ - received by the company from various banks on share application money. In this respect the relevant undisputed facts, also taken note of by Hon'ble ITAT are as under: -

a. The assessee has received income of Rs.

1,51,54,534/ - as interest from various banks on share application money and deducted the said receipt from pre-operative expenses in its books of accounts. In the original return filed on 31.12.1992 the company offered the said amount as income from other sources and adjusted the capitalisation of pre-operative expenses for the purposes of claiming de