2022 (10) TMI 1124

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....eal has been filed challenging the order dated 20th December, 2018 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No.5196/Del./2014 for the Assessment Year 2009-10. 2. Learned counsel for the Appellant states that the ITAT has erred in holding that the incidental income of Rs.24,30,64,353/- of the assessee in the form of interest income is eligible for deduction under Section 10A of the Income Tax Act, 1961 ('the Act') without appreciating that as per the provisions of Section 10(A)(1) of the Act, only profits derived from the eligible undertaking will be entitled to deduction under Section 10A of the Act. 3. He submits that the ITAT has erred in following the decision of the Karnataka High Court in Commissioner of Income....

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....ed it. The question as to whether incomes such as the one set to be taxed, i.e. interest earned from the fixed deposits which in turn constituted the foreign export business income, are entitled to deduction under Section 10A was the subject of the judgment of this Court in Riviera Home Furnishing v. ACIT 2016 (65) taxmann.com 287 (Del). 3. The Court then had the occasion to consider the prevalent ruling of the Supreme Court on this issue in Liberty India v. CIT 2009 317 ITR 281. 4. This Court - in Riviera (supra) held as follows: "15. In the considered view of the Court, the submissions made on behalf of the Revenue proceed on the basic misconception regarding the true purport of the provisions of Chapter VIA of ....