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2018 (6) TMI 1779 - AT - Income TaxDeduction u/s 80IA - interest earned on fixed deposits for the performances of bank guarantee for carrying on the business for providing performance guarantee - AO held that the interest income earned on FDRs and misc. income cannot be considered as profit derived from the business of developing, operating or maintaining infrastructural facilities and thereby not eligible for deduction u/s 80IA - HELD THAT:- Hon'ble Supreme Court in case of Conventional Fastners [2018 (5) TMI 1866 - SC ORDER] made it clear that interest earned on fixed deposit maintained with bank for obtaining bank guarantee is not derived from business, hence not entitle to deduction. The decision of the Apex Court is applicable in the present case which also considered the decision relied by the Ld. AR i.e. Pandian Chemicals [1997 (4) TMI 38 - MADRAS HIGH COURT]. The decision relied upon by the Ld. AR are factually different and are not applicable in the present case while the decision of the Apex Court passed in Conventional Fastners is more apt in the present case. Therefore, the order of the CIT(A) is set aside and appeal of the Revenue is allowed.
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