2011 (5) TMI 952

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.... S. A. Bohra ORDER Mukul Kr. Shrawat (Judicial Member) These are cross appeals filed by the rival sides arising from the order of the CIT(Appeals)-IV Surat dated 10.09.2009 passed for Assessment Year 2005-06. [A] Assessee's appeal, ITA No.3148/Ahd/2009 for A.Y.2005-06 2. The effective ground reads as under: 1. On the facts and in circumstances of the case as well as law on ....

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....s such treated as 'income from business' and, therefore, it will not be available for deduction under section 80IA. Similar view was also taken by Hon.Punjab & Haryana High Court in (2007) Nahar Exports Ltd. vs. CIT 288 ITR 494 (P&H). However, once interest income is assessed u/s.56 the expenditure admissible u/s.57(iii) being expenditure incurred wholly and exclusively for the purpose of earning ....

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....relief as per the following observation: "I have carefully considered the reasons given by Assessing Officer & also the submissions of the appellant. After carefully analyzing the facts of the case it is seen that so far as interest income on FDR is concerned, I find merit in the contention of appellant that as FDR is placed out of loan borrowed from the bank, the expenditure incurred on ....

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....ion of assessing officer in disallowing deduction u/s.10B on said interest income of Rs. 2,02,386/- is confirmed. Accordingly, out of total disallowance of Rs. 11,47,586/- made by assessing officer, disallowance to the extent of Rs. 9,45,200/- is hereby deleted & the balance amount of Rs. 2,02,386/- is confirmed." 4.2. On the basis of observation of ld.CIT(A) since the assessee has not proved t....