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2018 (9) TMI 774 - AT - Income TaxEntitled to the benefits of section 10B - Interest income earned by the assessee on Fixed Deposits kept with bank in order to obtain the facility of Bank Guarantees - Held that:- The claim of the assessee is on a sound footing in as much as factually speaking it is not disputed that interest has been earned on deposit with bank and used for furthering the business of its 100% EOU, which is eligible for benefits of section 10B. So long as such income constitutes profits and gains of business of the eligible undertaking, the same would fall within the scope of expression ‘Income from profits and gains’ incorporated in section 10B(4) of the Act. In view of the aforesaid and also the order dated 16.07.2010 of the Tribunal in assessee’s own case for A.Ys 2003-04 and 2004-05, claim of the assessee deserves to be accepted. We hold so. Scaling down the carry forward losses of non-10B units by the amount of exemption u/s. 10B - Held that:- CIT(A) has directed the Assessing Officer to verify the claim of the assessee and allow it as per law. Pertinently, before the CIT(A) the assessee has relied on various decisions of the Tribunal as well as the judgment of Hon’ble Karnataka High Court in the case of Yokogawa India Ltd. (2011 (8) TMI 845 - KARNATAKA HIGH COURT). In our considered opinion, the manner in which the CIT(A) has decided the issue does not require any interference from our side
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