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2014 (9) TMI 1267 - HC - Income TaxDeduction u/s 80-IA - Interest Income from employees on advances, Equipment Hire charges, Crane Hire charges, Ammonia Tank Wagon Hire Charges AND Interest Income from Banks and Financial institutions - HELD THAT:- The issue stands decided by this Court against the appellant-assessee in favour of the revenue in 2013 (10) TMI 1036 - DELHI HIGH COURT] and [2012 (4) TMI 454 - DELHI HIGH COURT]. The aforesaid factual position and that the amounts/income mentioned in Serial No. (i) to (v) are covered by the said decisions, is accepted by the counsel for the appellant- assessee, who states that appeals are preferred and pending before the Supreme Court. Following the aforesaid orders, the present appeal in respect of Serial Nos. (i) to (v) has to be dismissed and is accordingly so ordered. Interest income earned by the Appellant from investment deposit under Section 32AB of the Act in IDBI Bank - The appellant-assessee had deposited certain amounts in the account maintained under Section 32-AB of the Act with the Development Bank. The deposits so made were out of the sale proceeds i.e. income chargeable under the head Profits and gains of business or profession. Interest was earned on the said deposits and the appellant-assessee claims that the interest earned should be included in the income derived from the industrial undertaking and accordingly was eligible for deduction under Section 80-IA - Section 80-IA of the Act does not apply and cover income in the nature of profits and gains of business or profession but is restricted only to income derived from an industrial undertaking after a certain date etc. The expression derived from refers to the first or the immediate cause/source of income earned, which in the present case would be the deposits in the bank and interest paid by the said bank and not the industrial undertaking. The aforesaid interest income, therefore, cannot be treated as income derived from the industrial undertaking covered under Section 80IA - Tribunal has rightly relied upon the decision of the Supreme Court in CIT Vs. Pandian Chemicals Ltd [2003 (4) TMI 3 - SUPREME COURT] in which it has been held that the word derived from is narrower than the word attributable to and the earlier term should be interpreted as something which has direct and immediate first source nexus with the industrial undertaking. We are not inclined to issue notice on the Serial No. (vi). The appeal is accordingly dismissed in limine.
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