TaxTMI 
TaxTMI 
2026 (10) TMI 60
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....inst the order dated 03.07.2019 passed by the Income Tax Appellate Tribunal, 'C' Bench, Bangalore, in ITA Nos.1447 and 1448/Bang/2017 for assessment years 2010-11 and 2011-12. 2. Heard learned counsel Sri. E.I. Sanmathi for the appellants and learned Senior Counsel Sri. K.R. Vasudevan for learned counsel Sri. P.D. Ankur for the respondent assessee. Perused the entire appeal papers. 3. The above appeal was admitted on 28.06.2021 to examine the following Substantial Questions of Law: "1. "Whether on the facts and circumstances of the case, the Tribunal was right in law in setting aside disallowance made under section 40 (a) (ia) of the Act in respect of commission payment by holding that the provisions of section 195 ar....
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....t Packard Global Soft Ltd even though the nature of receipt of income do not have any nexus with export turnover and same is not incidental to export business"?" 4. At the outset, learned counsel for the respondent submits that the Substantial Questions of Law No.1 and 2 raised by the appellants-revenue is answered by the Co-ordinate Bench of this Court in ITA No.223/2018 in Principal Commissioner of Income Tax-5 and Another vs. M/s.Puma Sports India P., Ltd. 5. It is further submitted that the SLP filed against the said judgment was dismissed by the Hon'ble Apex Court by order dated 29.10.2021 in SLP(C) No.15834/2021. It is also pointed out that by following the judgment in M/s.Puma Sports India P., Ltd., ITA No.834/2018 [M/s.Pri....
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....nd these cases cannot be compared with deductions under Sections 80-HH or 80-IB in Chapter VIA of the Act where an assessee dealing with several activities or commodities may inter alia earn profits and gains from the specified activity and therefore in those cases, the Hon'ble Supreme Court has held that the interest income would not be the income "derived from" such Undertakings doing such special business activity. 37. On the above legal position discussed by us, we are of the opinion that the Respondent assessee was entitled to 100% exemption or deduction Section 10-A of the Act in respect of the interest income earned by it on the deposits made by it with the Banks in the ordinary course of its business and also interest e....