2017 (5) TMI 1763

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....lore, is opposed to the law and not on the facts and circumstances Of the case. 2 On the facts and circumstances of the case, whether the CIT (A) h as erred in not appreciating the fact that the Apex Court has considered the legislative intent behind the use of the word "derived from" in the case of Liberty India and Others Vs. CIT - 317 ITR 218 (SC) and reaffirmed that the words "derived from" are narrower in connotation as compared to the words "attributable to". In other words by using the expression "derived from", the Parliament intended to cover source not beyond the first degree. 3. On the facts and in the circumstances of the case, whether the CIT(A) erred in law by directing the Assessing Officer to reduce the exp....

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.... claim of deduction under Section 10A in respect of the interest income of Rs. 6,01,773 on fixed deposit by holding that the interest income has no nexus with the business activity of the assessee and therefore the same cannot be treated as business income of the undertaking. 4. On appeal, the assessee relied upon the decision of the Hon'ble jurisdictional High Court in the case of CIT Vs. Motorola India Electronics Pvt. Ltd. 225 Taxman 11 and the CIT (Appeals) allowed the claim of the assessee. 5. Before us, the learned Departmental Representative has submitted that in the case of CIT Vs. Motorola India Electronics Pvt. Ltd. (supra), the interest income was earned by the assessee on the deposits lying in the EEFC Account whe....

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....f the amount is invested within the country by way of fixed deposits, another portion of the amount is invested by way of loan to the sister concern which is deriving interest or the consideration received from sale of the import entitlement, which is permissible in law. Now the question is whether the interest received and the consideration received by sale of import entitlement is to be construed as income of the business of the undertaking. There is a direct nexus between this income and the income of the business of the undertaking. Though it does not par take the character of a profit and gains from the sale of an article, it is the income which is derived from the consideration realized by export of articles. In view of the definition....