Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1517 - AT - Income TaxDeduction u/s 10A allowed in respect of the interest earned on Fixed Deposits - HELD THAT:- It is not in dispute that the interest income has been assessed by the Assessing Officer as business income of the assessee. As in the case of Motorola India Electronics (P.) Ltd. (2014 (1) TMI 1235 - KARNATAKA HIGH COURT) has clearly taken note of the computation of income under section 80HHC and under Section10A/10B of the Act and then observed that the interest income though cannot be partake the character of profit and gain from the sale of article however, it is the income which is derived from the consideration realised by the export of articles. Therefore having considered the definition of income from profit and gain as envisaged in sub-section (4) of section 10B/10A the benefit of exemption was held to be available to the interest income. A similar view has been taken by the Hon'ble jurisdictional High Court in other cases viz. Caritor India (P.) Ltd [2014 (10) TMI 1016 - KARNATAKA HIGH COURT ] as well as in the case of Rajesh Exports [2014 (10) TMI 1017 - KARNATAKA HIGH COURT ] . The Hon'ble Kolkata High Court in the case of Hindustan Gum & Chemicals Ltd. (2016 (7) TMI 920 - CALCUTTA HIGH COURT) has also taken a similar view by following the decision in the case of Motorola India Electronics Pvt. Ltd. (2014 (1) TMI 1235 - KARNATAKA HIGH COURT). In view of the binding precedent of Hon'ble jurisdictional High Court on the issue, we do not find any error or illegality in the impugned directions of DRP qua this issue. These grounds of revenue are dismissed. Expenditure incurred on telecommunication expenses to be excluded from the export turnover as well as from total turnover for computing the deduction under Section 10A - HELD THAT:- We find that the issue of expenditure incurred towards telecommunication charges is reduced from export turnover an equal amount should also be reduced from total turnover while computing the deduction under section 10A of the Act, is covered in favour of the assessee by the decision of the Hon'ble Karnataka High Court in the case of CIT v. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT]. The decision of Hon'ble jurisdictional High Court is a binding precedent for the Bangalore Bench of the Tribunal. Hence, this issue is decided against the revenue and in favour of assessee.
|