TaxTMI 
TaxTMI 
2005 (12) TMI 514
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....al) 2. In this appeal, the Revenue has opposed in allowing the interest income of Rs. 4,26,601 received on fixed deposits for the purpose of computing the deduction claimed under section 80-IA of the Income-tax Act, 1961. 2.1 The simple point at issue brought out for our adjudication is whether the interest received from fixed deposits amounting to Rs. 4,26,601 are derived from industrial undertaking for the purpose of deduction under section 80-IA of the Act or not. 2.2 At the outset of hearing, the learned Departmental Representative pointed out that similar issue had been decided against the assessee in ITA No. 4751/Mum./2001, wherein the Tribunal held as under :-- "We have heard the rival submissions and considered the facts and mat....
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....of scrap itself cannot be said to have been derived from industrial undertaking, we find no force in the contention of the learned counsel for the assessee that the compensation received from the customers for non-supply of certain spare parts can be treated as derived from industrial undertaking. In this view of the matter, we are inclined to dismiss the assessee's appeal." On the other hand, the learned Authorised Representative of the assessee supported the order of the CIT(A). 2.3 After going through the rival contentions and also after going through the material on record, we find that this issue is squarely covered by the decision of Co-ordinate Bench in the case of Tema Exchangers Mfrs. (P.) Ltd., which is duly fortified by the vie....
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.... which was delivered in a different context, when the provisions of section 34(1) of the Act was in statute book. By Taxation Laws (Amendment and Miscellaneous Provision) Act, 1986, the provision of section 34(1) have been deleted from the income-tax Act w.e.f. 1-4-1988. In the present case, the assessee furnished the return, wherein the depreciation was not claimed. The same was treated by the Revenue Authorities as tax planning. The object of providing for depreciation is to spread the expenditure incurred on the asset over its effective life-time and the amount written off during an accounting period is intended to represent the proportion of such expenditure which had expired during the period. The Hon'ble Bombay High Court in the case ....