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2015 (7) TMI 783 - HC - Income TaxDeduction u/s.80IB - ITAT confirming the order passed by CIT(A) in directing not to exclude the following income, i.e.Interest on delayed payment from debtors,Interest on loan advances to group concerns,Interest on fixed deposits and Income by way of sale of DEPB entitlement from profit of the business for working of deduction u/s.80IB - Held that:- As relying on Nirma Industries Ltd. V/s. Deputy Commissioner of Income-Tax (2006 (2) TMI 92 - GUJARAT High Court) as well as Commissioner of Income-Tax V/s. Nirma Ltd. (2014 (10) TMI 388 - GUJARAT HIGH COURT) wherein it has been held that interest received on delayed payment of sale consideration shall be treated as amount derived from the business and the assessee would be entitled for deduction on such interest on its total income. Decided in favour of the assessee. As far as deduction granted with regard to the income received by the assessee so far as sale received from DEPB is concerned, the Hon'ble Supreme Court in the case of Liberty India V/s. Commissioner of Income-Tax (2009 (8) TMI 63 - SUPREME COURT) has categorically held that such income cannot be treated as income from business activities and, therefore, no deduction can be granted under the provisions of 80-IB. Decided against assessee.
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