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2016 (4) TMI 1010 - AT - Income TaxInterest income received on late realization of sale proceeds - assessed as business income OR income from other sources - Held that:- Hon’ble Gujarat High Court in the case of Nirma Industries Ltd. DCIT, [2006 (2) TMI 92 - GUJARAT High Court ] where it is held that interest income received by the assessee on late realization of its sale proceeds will be assessed as business income which will qualify for deduction under section 80IA, because, it is to be construed as income derived from industrial undertaking. If that yardstick is applied here, then, this interest income is to be assessed as business income, and accordingly, the partners would get remuneration on this amount. Considering this aspects, we are of the view that the ld.CIT(A) has erred in excluding this amount for the purpose of calculation of remuneration of the partners under section 40(b). We allow the ground of appeal raised by the assessee, and delete the addition made by the ld.CIT(A) on this issue. This interest income be assessed as business income.
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