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2010 (4) TMI 229 - HC - Income TaxIndustrial Undertaking- The Assessing Officer held that the interest realized by the assessee on the amount of Rs. 4, 36, 372 on account of unsecured loans advanced by the assessee could not be held to constitute profits and gains derived from the industrial undertaking. The assessee was found to have parked funds with a specific aim of earning interest thereon and it was consequently held that the interest received as such, had no direct link with the profits and gains derived from the industrial undertaking. The Commissioner (Appeals) held that the interest received as such, had no direct link with the profits and gains derived from the industrial undertaking. The Commissioner (Appeals) held that the interest income of Rs. 4,36,372 could not be reduced from the business income while computing the Income u/s 80-IB. The Tribunal confirmed the view of Commissioner (Appeals). Held that- for the purpose of deduction u/s 80-IB, the interest income received on unsecured loans did not for part of business income.
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