TaxTMI 
TaxTMI 
TaxTMI 
2009 (5) TMI 617
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....y stated the facts of the case are that the assessee was carrying on the business of manufacturing and export of stubbed and plain jewellery of gold and platinum. It had its factory at Gem & Jewellery Complex III, SEEPZ, Andheri (East), Mumbai-400 096. Return was filed declaring total income at Rs. 18,02,187. The assessee had claimed deduction under section 10A. On the perusal of the details of bank interest, the Assessing Officer noticed that the assessee had debited interest to the tune of Rs. 95,36,873.46 to its Profit and Loss Account after netting off of interest received on fixed deposits of Rs. 9,00,961 against the bank interest paid at Rs. 1,04,37,835. The assessee was show-caused to explain as to why deduction be not denied under s....
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....igible for deduction under section 10A. He also referred to the order in the case of Asstt. CIT v. Motorola India Electronics (P.) Ltd. [2008] 114 ITD 387 (Bang.) in which the assessee was held to be entitled to deduction under section 10A in respect of the interest income. In the opposition the learned Departmental Representative strongly relied on the impugned order. It was submitted that the interest earned on FDRs was neither business income nor eligible for deduction under section 10A. 4. We have heard the rival submissions in the light of material placed before us and precedents relied upon by the parties before us and the departmental authorities below. In order to consider whether or not the deduction is available under section 10A....
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....o be entitled for claiming the benefit under the section. In the case of CIT v. Sterling Foods [1999] 237 ITR 579 (SC) the assessee claimed deduction under section 80HH for sale consideration of import entitlement. The Hon'ble Supreme Court held that the sale consi-deration of import entitlement cannot be held to constitute profits and gains derived from the assessee's industrial undertaking for the purpose of computing deduction under section 80HH as the source of import entitlement is the export promotion scheme of the Central Government and not the industrial undertaking. Same view has been reiterated by the Hon'ble Supreme Court in the case of Hindustan Lever Ltd. v. CIT [1999] 239 ITR 297. More recently the Hon'ble Supreme Court in the....
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....om export of articles or things or computer software' shall be the amount which bears to the 'profits of the business of the undertaking', the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking. By providing for considering the 'profits of the business of the undertaking', the position has been made clear that the restricted general meaning given to eligible profits as derived from the export of articles in sub-section (1) has been given a go by in sub-section (4) and the scope of the benefit has been expanded by extending to the all profits of the business carried on by the undertaking. Once the expression 'derived from'....