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2014 (10) TMI 1017 - HC - Income TaxCorrect head of income - interest income earned by the assessee from fixed deposits - ‘Income from Business’ or ‘Income from Other Sources’ - claim of deduction under Section 10B - HELD THAT: This Court in the case M/S MOTOROLA INDIA ELECTRONICS PVT LTD [2014 (1) TMI 1235 - KARNATAKA HIGH COURT] where it was held the interest received or the consideration received by sale of import entitlement is to be construed as income of the business of the undertaking, then there is a direct nexus between this income and the income of the business of the undertaking. Though it does not par take the character of a profit and gains from the sale of an article. In view of the definition of ‘Income from Profits and Gains’ incorporated in Subsection (4), the assessee is entitled to the benefit of exemption of the said amount as contemplated under Section 10B of the Act. Therefore, the interest derived from the said deposit is also exempted from payment of tax. - Decided in favour of assessee.
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