2016 (3) TMI 1285

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....elates to disallowance of assessee's claim of deduction under section 10A of the Act in respect of interest income of Rs. 4,46,09,912. 3. Briefly stated the facts are, assessee company is engaged in the business of providing Information Technology Enabled Services (ITES). For the assessment year under consideration, assessee filed its return of income on 29th September 2009, declaring total income of Rs. 6,03,23,282, under normal provisions and book profit of Rs. 1,44,35,83,528 under section 115JB of the Act. The Assessing Officer, while completing assessment, noticing that the assessee has claimed deduction under section 10A, on the interest income of Rs. 4,46,09,912, held that such income being assessable under the head income from oth....

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....7-08 in ITA no.7610/Mum./2011 dated 6th January 2016, and allowed assessee's claim of deduction under section 10A of the Act in respect of interest income. The relevant observations of the Tribunal in this regard are reproduced below:- "6. We have considered the submissions of the parties, perused the orders of the authorities below and the material available on record. Solitary issue arising for consideration is whether the assessee is eligible for claiming of exemption under section 10A, in respect of interest income earned by it. While the assessee has claimed exemption under section 10A on the interest income of Rs. 1,17,23,280, on the reasoning that it was derived from the business of undertaking. Per-contra, it is the stand o....

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....e 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 of this Tribunal in the case of the assessee's sister concern, M/s. Syntel Limited, in ITA No.3413/Mum/ 2007 dated 31/08/2015 at para 5 and 5.1 thereof. The Co-ordinate bench has held that interest income earned by the assessee has a direct nexus and was derived from the assessee's business and was, therefore, entitled to be considered for deduction u/s.10A of the Act. Following the aforesaid decision of the Co-ordinate Bench in the case of M/s. Syntel Limit (supra), we uphold the impugned order of the Ld. CIT(A) in directing the Assessing Officer to consider the interes....