Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 921 - AT - Income TaxExclusion of claim on account of interest for computing deduction u/s 10B - As decided in assessee's own case for Assessment Year 2009-10 [2015 (2) TMI 102 - ITAT DELHI] interest income having close nexus with the business activity of the assessee is assessable as income from business and, hence, eligible for the benefit u/s 10A and section 10B. In view of the above discussion, we hold that the assessee is entitled to deduction u/s 10B of the Act in respect of the interest income earned on FDRs made for the purposes of keeping margin money or for availing any other credit facility from banks. The impugned order on the issue of deduction u/s 10B is set aside and the matter is sent back to the AO for computing deduction u/s 10B afresh in conformity with our above findings and conclusions. Non exclusion of the amount claimed as interest paid on loan used for the purpose of construction of property while computing the business income - Held that:- Undisputedly the assessee has paid the interest on loan utilized for the construction of property had shown its income under the head ‘income from house property’, interest thereon is allowable deduction u/s 24B of the Act. So following the decision rendered by co-ordinate bench of Tribunal in its own case for Assessment Year 2009-10 [2015 (2) TMI 102 - ITAT DELHI], we direct the AO to allow the deduction claimed by the assess after verifying the amount of loan utilized, interest paid thereon and thereafter assess the income from the house property earned by the assessee, by providing opportunity of being heard. So ground determined in favour of the assessee. Non exclusion of the scrap sale from turn over as well as total turnover while computing the deduction u/s 10B - Held that:- The amount of sale of scrap is not includable in the total turnover or local turn over as the assessee is not into the business of scraps, so we find no illegality or perversity in the findings returned by the ld. CIT(A), hence ground determined against the assessee.
|