TaxTMI 
TaxTMI 
2026 (8) TMI 702
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....or the appellant-revenue and learned advocate Mr. B.S. Soparkar for the respondent-assessee. 2. This appeal is filed under Section 260A of the Income Tax Act, 1961 (for short 'the Act'), by the appellant-revenue arising out of order dated 1.9.2016 passed by Income Tax Appellate Tribunal, Ahmedabad 'C' Bench, Ahmedabad (for short 'the Tribunal') in CO No. 221/Ahd/2011 for Assessment Year (A.Y) : 2008-09. 3. Tax Appeal No. 644 of 2017 was admitted by order dated 04.09.2017 for consideration of the following substantial questions of law: "[A] Whether the Appellate Tribunal was right in holding that interest income from unutilised funds parked with the Banks, is eligible for deduction u/s. 80IAB? [B] Whether the Appellat....
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.... At the outset, learned Senior Standing Counsel Ms. Maithili Mehta for the appellant and learned advocate Mr. B.S. Soparkar for the respondent-assessee have jointly submitted that both the questions raised in the appeal are no more res integra and covered by decision of this Hon'ble Court. 8.1 As far as Question No. 1 is concerned, learned Senior Standing Counsel Ms. Mehta has submitted that the issue is no more res integra and is covered by decision of this Court in case of Commissioner of Income Tax v. Nirma Limited, reported in (2014) 367 ITR 12 (Guj). Placing reliance on the said decision, the Tribunal in the impugned order has observed as under: "Tax Appeal No. 371 of 2002 "(1) Whether on the facts and in the circu....
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....s its stand. When one reads the opening portion of section 80I of the Act it is clear that words used are: "gross total income of an assessee includes any profits and gains derived from an industrial undertaking". Once this is the position then, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to the prescribed percentage is to be allowed. That, in fact the gross total income of the assessee included profits and gains from such business, and this is apparent on a plain glance at the computation in the assessment order. Both in relation to Vatva unit and Mandali unit the computation commences by taking profit as per statement of income filed along with return of income. Theref....
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....e of the financial institutions and therefore the income received thereupon cannot be termed to be income from other sources." 9. In view of the settled legal position and on the basis of submissions made by learned advocates for both the sides, Question No. 1 is answered in favour of the assessee and against the revenue. 10. As far as Question No. 2 with regard to issue of eligibility of interest income from unutilised funds parked with the Bank, for deduction under Section 80IAB of the Act is concerned, learned Senior Standing Counsel Ms. Mehta submitted that the same is covered by decision of this Court dated 31.7.2017 passed in Tax Appeal No. 486 of 2017 in case of Commissioner of Income Tax-Vadodara-2 v. Vision Finstock Ltd., whe....