TMI Blog2018 (9) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... rsus CIT, (2013 (11) TMI 14 - SUPREME COURT) and CIT versus Zoom Communication Private Limited, (2010 (5) TMI 34 - DELHI HIGH COURT), to accept that assessee had discharged the onus to establish its bona fide while making claim for deduction/exemption under Section 10B of the Act by netting of interest received from Income Tax Department, from interest paid to the bank to make payment of tax to the Income Tax Department. There was a connect and link between the interest paid to the bank, which was business expenditure, and interest received from the Income Tax Department. Referring to factual matrix, the Tribunal has accepted the reasoning and finding given by the Commissioner of Income Tax (Appeals) that the conduct of assessee in nett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of quantum of deduction under Section 10B of the Act. The question relates to discharge or satisfaction of onus under Explanation 1 to Section 271 (1)(c) of the Act. 4. It is an accepted and admitted position that the respondent-assessee, a 100% export oriented unit, was engaged in business of accounting data processing for its various customers, including American Express World Wide. The respondent-assessee did not have any other business income and was claiming deduction under Section 10B from Assessment Years 1996-97 to 2005-06. 5. On the question of netting of interest earned on the income tax refund against interest paid, the stand of the respondent-assessee was that deduction under Section 10B was to be computed in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Supreme Court in MAK Data Private Limited versus CIT, (2013) 359 ITR 593 (SC) and decision of the Delhi High Court in CIT versus Zoom Communication Private Limited, (2010) 327 ITR 510 (Delhi), to accept that the respondent-assessee had discharged the onus to establish its bona fide while making claim for deduction/exemption under Section 10B of the Act by netting of interest received from Income Tax Department, from interest paid to the bank to make payment of tax to the Income Tax Department. Clearly, there was a connect and link between the interest paid to the bank, which was business expenditure, and interest received from the Income Tax Department. Referring to factual matrix, the Tribunal has accepted the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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