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2019 (3) TMI 1861 - ITAT MUMBALDeduction u/s 10A - AO excluding the interest income earned while determining the profits eligible for the purpose of computation of deduction under Section 10A - HELD THAT:- The Tribunal in Assessment Year 2009-10 [2018 (5) TMI 130 - ITAT MUMBAI] by following the judgment of the Hon'ble Karnataka High Court in the case of M/s. Hewlett Packard Global Soft Ltd. [2017 (11) TMI 205 - KARNATAKA HIGH COURT] held that the interest income earned on funds placed in the bank was entitled to benefits of Sec. 10A. The Tribunal further noticed that the interest income earned had a nexus with the borrowing raised from the bank which was, in turn, utilised for carrying on the eligible business. Similarly, on the issue of interest earned on the security deposit placed for obtaining electricity connection is concerned, the same was also held eligible for the benefits of Sec. 10A of the Act following the decision of the Tribunal in the case of M/s. Dania Oro Jewellery Pvt. Ltd. [2018 (1) TMI 240 - ITAT MUMBAI] Thus claim of assessee for inclusion of interest income for the purposes of Sec. 10A of the Act is accepted. Assessing Officer is directed to compute deduction under Section 10A of the Act by considering the aforesaid interest income. Appeal of the assessee is allowed,
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