Commission of Orissa Ltd., Bhubaneswar Januganj, Balasore स्थायी लेखा सं ./ जीआइआर सं ./ PAN/GIR No. : AABCN 3921 H (अपीऱाथी /Appellant) .. (प्रत्यथी / Respondent) AND आयकर अपील सं./ITA Nos.227/CTK/2015 ( निर्धारण वर्ा / A.Y :20082009) DCIT (TDSII), Vs. M/s Northern Electricity Bhubaneswar supply Commission of Orissa Ltd., Januganj, Balasore स्थायी लेखा सं ./ जीआइआर सं ./ PAN/GIR No. : AABCN 3921 H (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) निर्ाा ररती की ओर से /Assessee by : Shri Manoj Patra, CA AR राजस्व की ओर से /Revenue by : Shri D.K.Pradhan, DR सुनवाई की तारीख / Date of Hearing : 11/10/2017 घोषणा की तारीख/Date of Pronouncement 13/10/2017 आदे श / O R D E R Per Shri Pavan Kumar Gadale, JM: These are the cross appeals filed by the assessee and revenue against the order of CIT(A)1, Bhubaneswar, dated 9.2.2015 & 26.3.2015 for the assessment years 200809 & 20102011, passed u/s.254/201(1)/(1A) of the Income Tax Act, 1961. 2. Out of these three appeals, appeal of the assessee i.e. ITA No.280/CTK/2015 is filed with 14 days barred by 14 days. Considering the application filed by the assessee for condonation of delay, we condone 2 ITA No.280, 227 & 281/CTK/2015 the delay of 14 days in filing the appeal and the appeal is heard on merits along with other connected appeals. 3. Since the issue and facts involved in these appeals are interconnected and common, they are being heard and disposed off through consolidated order. For the sake of convenience, we shall take up the appeal filed by the assessee in ITA No.280/CTK/2015 for the assessment year 20082009, wherein the assessee has raised the following grounds : 1. Treating the appellant as assessee in default for non deduction of tax on interest accounting of Rs.4,10,45,248/ on Gridco loan is not based on any logic as the appellant has not affected any direct payment to GRIDCO and it was done pursuant to order of OERC. 2. GRIDCO being a wholly own Govt. of Orissa undertaking TDS on interest payment to Gridco is not deductible in terms of notification number S.03489 of CBDT read with subClause (f) of Clause CiW of subsection 3 of section 194A of LT. Act, 1961. 3. That the appellant craves leave to add or to amend the above grounds of appeal before or at the time of hearing of the appeal. 4. For these and among other grounds to be urged at the time of hearing, adequate relief as may be deemed fit be granted in the matter. 4. Brief facts of the case are that the assessee is engaged in the business of supply of electricity transmission. Earlier the AO had passed an order and raised demand of Rs.1,35,49,880/ u/s.201(1) & 201(1A) of the Act. Aggrieved by the order, appeal was filed before the first appellate authority and the ld. CIT(A) issued certain directions to the AO and disposed of the appeal. Aggrieved, the assessee assailed an appeal before the Tribunal and the Tribunal restored the matter to the file of AO 3 ITA No.280, 227 & 281/CTK/2015 and directed the AO to determine the quantum of amount payment to GRIDCO and the nature of payment. Accordingly, the AO passed the order holding the assessee in default for nondeduction of TDS on interest Rs.4,10,45,248/ in the financial year 200708 paid to GRIDCO and Rs.1,33,53,680/ paid to REC and passed the assessment order dated 22.3.2013. 5. Aggrieved by the order of AO, the assessee has filed an appeal before the CIT(A). The CIT(A) on the issue of nondeduction of TDS on REC payments observed the ld. AR's submissions that REC has filed return of income on 30.3.2010 and the ledger account of interest of the assessee in the books of REC show that interest amounting to Rs.1,40,77,318/ has been received by the REC and relied on the decision