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2015 (8) TMI 720 - GUJARAT HIGH COURTExclusion of interest income for the purpose of computing the deduction u/s 32AB - Held that:- The assessee was compelled to park a part of its funds in fixed deposits under the insistence of the financial institutions. On such funds, the assessee received interest. Such income cannot be treated as income from other sources and must be seen as part of the assessee's business of manufacturing and selling of chemicals. The decision of the Apex Court in the case of Pandian Chemicals Ltd. (2003 (4) TMI 3 - SUPREME Court ) would not be applicable. In the said case, the Apex Court was interpreting the phrase 'derived from' used in section 80HH of the Act. It was in this background that the Apex Court held that the words 'derived from' must be understood as something which has a direct or immediate nexus with the assessee's industrial undertaking. It was on that basis that the Apex Court held that interest derived by the industrial undertaking of the assessee on deposits made with the Electricity Board for the supply of electricity for running the industrial undertaking could not be said to flow directly from the industrial undertaking. Before concluding, we may notice that clause (i) of sub-section (2) of section 32AB defines eligible business or profession to mean business or profession other than those specified in sub-clauses (a) and (b) of clause (i) of section 32AB(2). Admittedly, the present case is not in either of the exclusionary clauses. Under the circumstances, we are of the opinion that the Tribunal committed no error directing the Assessing Officer not to exclude interest income for the purpose of computing the deduction u/s 32AB of the Act - Decided against revenue. Separate relief u/s 80HHA and 80I - Whether the Appellate Tribunal is right in law and on facts in directing to allow separate relief u/s 80HHA and 80I of the Act? - Held that:- Issue is concluded against the Revenue by virtue of the judgment of the Apex Court in the case of Joint Commissioner of Income Tax v. Mandideep Eng. & Pkg. Ind. P. Ltd., (2006 (4) TMI 75 - SUPREME Court) wherein held sections 80HH and 80-I, are independent of each other and therefore a new industrial unit can claim deductions under both the sections on the gross total income independently or that deduction u/s 80-I can be taken on the reduced balance after taking into account the benefit taken under section 80HH.- Decided against revenue.
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