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2023 (8) TMI 292 - DELHI HIGH COURTDeduction u/s 80IC - interest received on a fixed deposit, created pursuant to an order of the court to secure payment of entry tax - Tribunal has ruled against the appellant/assessee by holding that such income cannot be categorized on “derived” from an eligible business - HELD THAT:- According to us, the interest accrued on fixed deposits, furnished to secure payment of liability towards entry tax, cannot, by any stretch of imagination, be construed as income derived from eligible business i.e., profit and gains derived by an undertaking or an enterprise which is relatable to manufacturing or production of articles. It is not income qua which deduction u/s 80IC can be claimed by the appellant/assessee. Insofar as Appellant is concerned that the AO could not have, in such circumstances, treated the interest accrued on fixed deposit as business income, is a submission which has merit. However, that said, this would not impact the tax burden insofar as the appellant/assessee is concerned; what would change, perhaps, would only be the head under which such income is made amenable to tax. We are not inclined to interfere with the impugned order passed by the Tribunal.
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