2016 (7) TMI 1550

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....bal Choudhury, JCIT, Sr. D.R. ORDER This appeal is preferred by the Revenue against the order of the ld. Commissioner of Income Tax-(Appeals)-1, Kolkata dated 10.07.2014 for the assessment year 2006-07 on the following grounds: - "(1) On the facts and circumstances of the case, the ld. CIT(A) has erred in al lowing deduct ion of Rs. 29,62,628/- u/s 80IB of the I.T. Act, 1961 on inte....

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....olved therein relating to the assessee's claim for deduction under section 80IB in respect of interest earned from Fixed Deposits kept with Bank as margin money is squarely covered in favour of the assessee by the decision of the Hon'ble Calcutta High Court in assessee's own case for A.Y. 2003-04 rendered vide its order dated 21.07.2014 in ITA No. 99 of 2007, wherein a similar claim of the assesse....

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....uest ion was derived from out of sale of the important it lements. It was, therefore, possible to say that the income was not or did not have any direct nexus with the acivity of the assessee. Similarly, in the case of Liberty India (supra) the income in quest ion was the amount of drawback incentives received by the assessee which did not have any direct nexus with the export made by the assessee....

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....an be invested by way of margin money. When he is paying interest for Rs. 110/- and receiving interest on the amount of Rs. 10/-, it can only be said that he is really paying interest for Rs. I00/- which he originally needed for the business. The income arising out of the deposit made by him is, therefore, his business income". As the issue involved in the year under consideration as well as al....