TaxTMI 
TaxTMI 
2023 (5) TMI 416
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....e interest on FDR and Ground No. 5 relates to disallowance of expenditure under section 37 of the Act whereas Ground No. 6 relates to the disallowance under section 40(a)(ia) of the Act. Learned Counsel submitted that Grounds No. 6 to 8 are consequential in nature. 3. Brief facts of the case are that the assessee is in the business of generation and sale of power. While assessing the income of the assessee for the assessment year 2017-18, learned Assessing Officer made certain additions, which includes the income derived on FDRs and disallowance under section 37 of the Income Tax Act, 1961 (for short "the Act") of the service tax paid by the assessee and disallowance under section 40(a)(ia) of the Act in respect of TDS. 4. Insofar as the ....
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....hprasad M. Joshi [2009] 318 ITR 420 (Bombay) and also in the case of CIT vs. Eltek Sgs (P) Ltd. (supra). As a matter of fact, in the case of CIT vs. Jagdishprasad M. Joshi (supra), the Hon'ble High Court noticed the decision of CIT vs. Eltek Sgs (P) Ltd. (supra) wherein on a perusal of the material, difference between the language used in section 80HH of the Act and section 80-IB of the Act, the Hon'ble Bombay High Court found that section 80-IB of the Act does not use the expression 'profits and gains derived from an industrial undertaking' as used in section 80HH, but uses the expression 'profits and gains derived from any business referred to in sub-section ......' and, therefore, while section 80HH requires that the profits and ....
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....borrowed funds before the commencement of business activities by the assessee could be allowed as set-off of the interest payable; where as in the case on hand, the business of the assessee has already been commenced. This decision has no application to the facts of the case; whereas the decision in CIT vs. Jagdishprasad M. Joshi (supra), CIT vs. Eltek Sgs (P) Ltd. (supra) and M/s. Tema Exchangers Manufactures Pvt. Ltd. (supra) are on similar facts as involved in this appeal. 11. While respectfully following the decision of Hon'ble Bombay High Court in the case of CIT vs. Jagdishprasad M. Joshi (supra), CIT vs. Eltek Sgs (P) Ltd. (supra) and M/s. Tema Exchangers Manufactures Pvt. Ltd. (supra), I hold that interest earned by the assesse....