TaxTMI 
TaxTMI 
2016 (2) TMI 1156
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....rcumstances of the case and in law, the learned Commissioner (Appeals) erred in upholding / confirming the order of the ACIT of not considering the appellant company's claim that the interest income aggregating to Rs. 1,70,23,282 is in the nature of business income and is derived from the industrial undertaking and not allowing deduction under section 10A of the Act in respect of the said interest income." 2. Briefly stated the facts are, assessee a 100% export oriented unit filed its return of income on 30th September 2008, declaring total income of Rs. 1,17,23,280, under the normal provisions of the Income Tax Act, 1961 (for short "the Act") after claiming deduction under section 10A of the Act. Assessee also declared book profit of Rs. ....
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....the appeal preferred by the Department was dismissed on the ground of limitation, thus, the High Court did not lay down any principle in respect of claim of exemption under section 10A. On the contrary, learned Commissioner (Appeals) relying upon the decision of the Hon'ble Madras High Court in CIT v/s Menon Impex Pvt. Ltd., [2003] TIOL-354-HC dated 2nd September 2002, held that as interest income earned by the assessee is not derived from industrial undertaking, it is not eligible to claim deduction under section 10A of the Act on such income. 4. Learned Senior Counsel. Shri Dinesh Vyas, appearing for the assessee at the very outset, submitted that the issue is squarely covered by the decision of the Tribunal, Mumbai Bench, in assesse....
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....e issue on merit. Learned Sr. Counsel submitted, in any case of the matter, learned Commissioner (Appeals) was not justified in disallowing assessee's claim of exemption under section 10A by relying upon the decision of the Hon'ble Madras High Court in Menon Impex Pvt. Ltd. (supra) as the ratio laid down therein is in the context of deduction claimed under section 80HHC, provisions of which are different from section 10A, hence, not applicable to the facts of the assessee's case. For such proposition, learned Sr. Counsel relied upon the decision of Hon'ble Delhi High Court in CIT v/s Hritnik Exports Pvt. Ltd., judgment dated 13th November 2014 in ITA no.219 and 239 of 2014. 5. Learned Departmental Representative agreed that the iss....
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....he Hon'ble Supreme Court in Liberty India Ltd. v/s CIT. While doing so, the Hon'ble High Court observed that no substantial question of law arise out of the appeals preferred by the Department. As could be seen, following orders of the co-ordinate bench and High Court in case of M/s. Syntel Ltd. as aforesaid, the Tribunal in assessee's own case for assessment year 2007-08 in ITA no.7610/Mum./2011 dated 6th January 2016, has allowed deduction under section 10A, observing as under:- "3.3.1 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited. We find that the very same issue as the issue before us has been considered and decided by a Co-ordinate bench....