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2019 (2) TMI 1809 - HC - Income TaxDeduction u/s 80-IA - interest income earned on the margin money deposit with the banks and the interest earned on short-term loans and advances in the form of interest received from customers on the belated payments of invoices raised by the assessee - HELD THAT:- Interest income earned by the assessee in the ordinary course of business, cannot be said to be excluded from the head "Income from business or profession" in Part D, comprising of sections 28 to 44DB in Chapter IV, which deals with computation of the total income in the heads of income as per section 14 of the Act. If by no stretch of imagination, such interest income could be included under the head "Profits and gains of business or profession" only then it could fall in the residuary clause of "income from other sources" under section 56 of the Act and not otherwise. No occasion to artificially bifurcate and dissect the interest income earned by the assessee in the present case in its ordinary course of business, so as to take it out of the ambit of deduction available to it under section 80-IA - The efforts on the part of the Revenue authorities to create such artificial compartments in the "business income" of the assessee, merely to reduce the quantum of deduction available to the assessee under section 80-IA of the Act of which the eligibility of the assessee is not even in doubt, is nothing but a whimsical and the arbitrary view of the Revenue authorities and the same is opposed to common sense and business prudence of a common businessman. Our view is fully supported by the judgments relied upon by the learned counsel for the assessee as quoted above, whereas we find distinction of the facts in the case law relied upon by the Revenue and therefore, we have no hesitation to hold that the interest income earned by the assessee on margin money deposits with the bank and interest on short-term loans and advances in the form of belated payments made by customers was very much profits and gains of the business of the assessee and therefore, the assessee was entitled to deduction under section 80-IA of the Act in respect of such interest income also. Having in favour of the assessee, we do not consider it even necessary to answer the question whether the reopening of the assessment to bring to tax such income under the head "Income from other sources" and denying deduction under section 80-IA. - Decided in favour of the assessee
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