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2012 (4) TMI 675 - AT - Income TaxDelayed payment of employees’ contribution towards Provident Fund and towards ESIC - Held that:- The Act permits the employer to make the deposit with some delays, subject to stated consequences. Insofar as the Income-tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed. Computing deduction u/s.10A - Held that:- CIT(Appeals) was justified in allowing the claim of the assessee and directing the AO to exclude the expenses both from export turnover as well as total turnover while calculating the deduction u/s. 10A of the Act. Interest Income - Income From Other Sources OR Business Income - Held that:- Where an assessee invests its surplus funds in order to earn interest and to obviate its funds lying idle, such income would not fall for classification as business income. This is particularly so in a situation where the business of the assessee does not consist in the investment of funds. Where the assessee engages in an independent line of business, interest earned on deposits cannot be regarded as falling under the head of profits and gains of business or profession. Such income would fall for classification as income from other sources. Computing deduction under section 10A - Held that:- Income from a STPI Unit has to be excluded at source itself before arriving the gross total income Loss of a non- STPI Unit cannot be set off against the income of the STPI Unit while computing the deduction under section 10A of the Act. Brought forward losses and unabsorbed depreciation cannot be adjusted while computing deduction under section 10A of the Act and can be set-off against the income after the completion of tax holiday period. Further the required details have now been made available by the Assessee and it is necessary for the AO to go into the question as to which unit the unabsorbed depreciation pertains to. We therefore set aside the order of CIT(A) on this issue and remand the same to the AO for fresh consideration.
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