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2007 (12) TMI 218 - HC - Income TaxIndustrial Undertaking – deduction - . The CIT(A) reversed the order of the Assessing Officer and allowed the deduction to the assessee under section 80HHB in respect of the interest on RBI bonds as well as the deduction under section 80-IA in respect of the transportation charges received by it. The Tribunal concurred with the view taken by the CIT(A) – held that - as regards the interest on RBI bonds, this was part of the total settlement package by which the assessee was to receive Rs. 54.93 crores for the works undertaken in Iraq as a sub-contractor of the IRCON – benefit of deduction allowed u/s 80HHB - business of the assessee included not only manufacturing but all incidental activities undertaken till the delivery of the manufactured goods was effected. The benefit of the deduction to the assessee in terms of section 80-IA of the Act cannot be denied since the receipts on account of transportation are a part of its business receipts
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