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2014 (10) TMI 974 - TELANGANA AND ANDHRA PRADESH HIGH COURTExemption to section 10B - connection with activity of export - the interest earned in respect of bank deposits kept for opening letters of credit - Held that:- Obtaining of letters of credit is an essential activity for undertaking exports and the deposit of amounts for that purpose is a condition precedent. If the deposits so made have yielded interest, it certainly is attributable to or can be said to be derived from the activity of export Unless the amount is referable to the activity of the concerned industry and it has close nexus with such activity, it cannot be brought under the purview of section 80HH of the Act Thus setting aside the order of the Tribunal, in so far as it relates to items (b) and (c) claimed by the respondent, viz. : "(b) Interest given by the banks in respect of the moneys received by the said banks on behalf of the assessee-company against the pub lic issue of shares ; and (c) Interest earned in respect of the temporary intercorporate deposits kept by the assessee-company with other companies, out of the proceeds of the public issue of shares."
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