2012 (12) TMI 603

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....e by way of interest amounting to Rs. 3,13,91,602/- was deductible under section 80-IC of the Income Tax Act, 1961 (for short hereafter referred to as the Act). The learned Tribunal having answered in favour of the respondent-assessee, the Revenue is in appeal. 2. We have heard Mr. S Sarma, learned Counsel for the Revenue and Mr. RK Goenka, learned counsel for the respondent-assessee. 3. At the time of admission of the appeal, the following substantial question of law was framed:- "1. Whether on the facts and in the circumstances of the case, the Tribunal was justified and correct in law in holding that the interest income of Rs. 3,13,91,602/- received by the assessee is derived from the industrial undertaking of the assessee and is elig....

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....d for commencement of production or substantial expansion for the North Eastern States, in terms of section 80-IC (2)(b)(iii) was between the 24th December, 1997 and 31st March, 2007. The respondent-assessee being aggrieved preferred an appeal before the Commissioner of Income Tax (Appeals), who sustained the determination made by the Assessing Officer. 5. The learned Tribunal, however, reversed this finding in favour of the respondent-assessee on the following grounds:-  (i)  There was no dispute - (a)  that the assessee had received interest amounting to Rs. 3,13,19,602/- by way of delayed payment from its trade debtor as per the order of the jurisdictional High Court. (b)  that this amount by way of interest was r....