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2011 (8) TMI 498 - AT - Income TaxScrap Sale - deduction under 80IB - Held that:- where scrap has direct nexus with the industrial operations thereby implying that to the extent scrap is in the nature of bye-product of industrial operations, the same would qualify for deduction under section 80IB. Assessee carried on eligible business under 80IB-Interest received on bank Fixed Deposits. - Held :- “Income from other sources”-Hon’ble Supreme Court in the case of Liberty India V/s CIT (2009 - TMI - 34471), wherein it was held that section 80IB provides for allowing of deduction in respect of profits and gains derived from the eligible business. The connotation of the words “derived from” is narrower as compared to that of the words “attributable to”. - interest income is not derived from the eligible business and accordingly the assessee is not entitled to the deduction under section 80IB of the Act.
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