TaxTMI 
TaxTMI 
2014 (6) TMI 179
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....1. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in directing the Assessing Officer to treat and tax the interest of Rs. 10,41,315 on delayed payment of sale proceeds of power generated from windmills, as business income, without appreciating the fact that the interest received cannot be regarded as being derived from the industrial undertaking and hence not eligible for deduction u/s 80IA of the Act. 2. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in not appreciating the ratio of the judgment of the Hon'ble Supreme Court in the case of Liberty India Ltd. v/s CIT, [317 ITR 218) wherein it is held that certain income may constitute profit from business unde....
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....9] 317 ITR 218 (SC). The interest was in the nature of delayed payment of sale proceeds of power generated and sold. Therefore, the decision of the Jurisdictional High Court is clearly applicable. The learned Commissioner (Appeals) agreed with the contention of the assessee that the issue involved is directly covered by the decision of the Jurisdictional High Court in favour of the assessee and directed the Assessing Officer to treat the sum of Rs. 10,41,315, as business income allowable for deduction under section 80IB. 4. Before us, the learned Counsel, at the outset, submitted that the nature of interest was on account of delayed payment of sale proceeds of power generated from windmills. It is directly related to the business of the un....
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....purpose of section under section 80IB. The Jurisdictional High Court, after referring to the decision of the Hon'ble Supreme Court in Liberty India (supra), held as under:- Held, that what was received by the assessee from the purchaser was a component of interest towards delayed payment of the price of the goods sold, supplied and delivered by the assessee. There could be no dispute about the position that the price realized by the assessee from the sale of goods manufactured by the price realized by the assessee from the sale of goods manufactured by the industrial undertaking constituted a component of the profits and gains derived from the eligible business. The purchaser, on account of the delay in payment of the sale price also p....