https://www.taxtmi.com/caselaws?id=216564 SC addressed whether interest on foreign currency deposit was eligible for deduction under Section 10A as business income or taxable as income from other sources. Relying on precedent distinguishing between direct and indirect nexus with the eligible industrial undertaking, SC held that mere use of deposits for obtaining letters of credit does not automatically establish the requisite direct nexus. As the factual matrix concerning the nature and purpose of the deposits was not adequately examined, SC did not conclusively decide the allowability of Section 10A benefit. The matter was remitted to ITAT to reappraise the transactions in detail and determine afresh the character of interest income and consequent eligibility for deduction. en-us Thu, 06 Sep 2012 00:00:00 +0530 Mon, 01 Dec 2025 10:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216564 SC addressed whether interest on foreign currency deposit was eligible for deduction under Section 10A as business income or taxable as income from other sources. Relying on precedent distinguishing between direct and indirect nexus with the eligible industrial undertaking, SC held that mere use of deposits for obtaining letters of credit does not automatically establish the requisite direct nexus. As the factual matrix concerning the nature and purpose of the deposits was not adequately examined, SC did not conclusively decide the allowability of Section 10A benefit. The matter was remitted to ITAT to reappraise the transactions in detail and determine afresh the character of interest income and consequent eligibility for deduction. Case-Laws Income Tax Thu, 06 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216564