INFRASTRUCTURE DEVELOPMENT FINANCE CO. LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE II (3) CHENNAI

JUDGEMENT

(1.) The Assessee has filed the present Appeal calling into question the order of the Income Tax Appellate Tribunal dtd. 30/11/2007. The Substantial questions on which the Appeal had been admitted on 8/7/2008 are as follows:-

(2.) The appellant is a Public Limited Company incorporated on 30/1/1997 with the main object of providing Long Term Finance to enterprises engaged in developing, maintaining and operating infrastructure projects and facilities.

(3.) In the Assessment Year 2002-2003, matters surrounding which this appeal is concerned about, the appellant claimed exemption under Sec. 10(23G) of the Income Tax Act, 1961 ("the Act") in respect of interest income earned by it from long term finance provided to enterprises undertaking developing, maintaining and operating infrastructure facilities. The Appellant claimed entitled for exemption with respect to the Liquidated Damages which had been received from the borrowers on account of default on their part in making payments as per the terms of the loan agreements entered into by them with the appellant.