2016 (6) TMI 1325

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Mumbai ('the CIT(A)') has erred in upholding/ confirming the order of the Assistant Commissioner of Income Tax Range 8(3), Mumbai ('the ACIT') of not considering the Appellant Company's claim, that the interest income aggregating to Rs. 12,86,93,787/- is in the nature of Business Income and is derived from the industrial undertaking and not allowing deduction u /s 10A of the Act in respect of the said interest income." 2. The only issue is before us regarding the claim that interest income of Rs. 12,86,93,787/- earned by assessee is derived from industrial undertaking as business income and not allowing deduction u/s.10A of the Act in respect of said interest. It was pointed out that similar issue arose in assessee's own case in earlie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s to be assessed as income from other sources and assessee is not eligible for claiming deduction under section 10A. However, as could be seen, similar issue arose in case of assessee's sister concern M/s. Syntel Ltd. for the assessment years 1997-98, 1998-99 and 2001-02. The Tribunal, while deciding the issue accepted assessee's claim by allowing deduction under section 10A, in respect of interest income as well as some other income such a s exchange fluctuation gain and reversal of provision s. Against such order of the Tribunal, the department preferred appeal before the High Court vide Income Tax Appeals no.1974, 1976 and 1978 of 1009. The High Court in order dated 15 th December 2009, dismissed the appeal of the Department reje....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... a direct nexus with and being derived from its ITES business and, therefore, to include it while computing the eligible deduction u/s.10A of the Act. It is accordingly ordered. Consequently, the grounds of appeal raised by Revenue are dismissed." 7. No material difference in fact for the impugned assessment year has been brought to our notice by t he Learned Departmental Representative. Therefore, respectfully following the decision of the co-ordinate bench rendered in assessee's own case referred to above, we allow assessee's claim of deduction under section 10A. However, it is observed that the Assessing Officer had disallowed claim of deduction under section 10A for an amount of Rs. 1,17,23,282, being the interest incom....