2014 (11) TMI 1231

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....of this common order. 2. The assessee is company and is engaged in the business of manufacturing of auto components. 3. We have heard Smt. Parwinder Kaur Ld. Sr. DR on behalf of the revenue and Shri K.V.S.R. Krishna the Ld. Counsel on behalf of the assessee. 4. On a careful consideration of rival contentions and the facts and circumstances of the case and on a perusal of the papers on record and the orders of the authorities below we hold as follows :- We take up the revenue appeal in ITA No. 4207/D/13 on the following grounds :- 1. " On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 2,21,770/- made by the AO on account of disallowance of deduction u/s 10B of t....

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.... are assessable under some other head of income and not as income from business. Under these circumstances, we are of the considered opinion that the order of the first appellate authority has to be upheld by applying the decision of the special bench of the Tribunal in the case of Maral Overseas Ld. Vs. ACIT , ITA Nos. 777 & 999 (Ind) of 2004 & 295 & 356 (Ind) of 2006 dated 28.3.2012, where it is held that in the case of Liberty India, the Hon'ble Supreme Court has dealt with the provisions of section 80IA/80IB of the Act and not section 10B where a formula has been prescribed u/s 10B(4), the application of which would result in arriving at the figure of profits and gains that are to be considered as derived by the 100% EOU, for the purpos....

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.... disallowance of interest on account of interest free loan of Rs. 2.64 crore advanced to its subsidiary company. 2. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 20,37,678/- made by the AO on account of disallowance of deduction u/s 10B of the Income Tax Act, 1961 on miscellaneous income earned by the assessee from sale of scrap 3. On the facts and in the circumstances of the case, the CIT(A) has erred in holding the miscellaneous income earned from sale of scrap as main business activity. 9. The first issue is regarding the deletion of addition of Rs. 15,94,813/- by the Ld. CIT(A) on account of disallowance of interest, on interest free loan of Rs. 2.64 crores a....