2010 (9) TMI 1180

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....ER Mahavir Singh Judicial Member:- This appeal by the Revenue is arising out of the order of Commissioner of Income-tax (Appeals)-I, Surat in appeal No. CAS-I/32/07-08 dated 01-10- 2007. The assessment was framed by DCIT, Circle-1, Surat u/s143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') vide his order dated 29-03-2007 for assessment year 2005-06. 2. The only issue ....

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....anufacturing of texturised yarn and return of income was filed on 29-12-2005 showing total income at Rs. Nil. and claimed deduction u/s.80IB of the Act amounting to Rs. 29,37,042/-. On perusal of the audit report, profit and loss account the Assessing Officer noticed that the assessee declared other income as late payment charges at Rs. 20,09,915/-, wastage/scrap sales at Rs. 4,64,139/- and intere....

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....Appeal No.CAS-I/144/06-07 dated 15.5.07 for A.Y. 2004-5. As decided in that year the late payment charges of Rs. 20,09,915/- have to be considered as business income in view of the decision of Jurisdictional Gujarat High Court in the case of Nirma Industries (supra). The scrap sales of Rs. 4,64,139/- has to be considered as business income in view of the decision of Hon'ble High Court in the case ....

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....ion is to be included in the profits of the industrial undertaking. We find that the Hon'ble High Court has allowed deduction under Section 80I on delayed payment of interest received from trade debtors, the assessee is entitled for deduction under Section 80IA of the Act also. Accordingly, the interest on delayed payment is eligible for deduction u/s.80IB of the Act. As regard to scrap sale, the ....