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2016 (12) TMI 1191 - ITAT CHENNAITreatment of interest income on fixed deposits while computing the deduction u/s.10A - Held that:- Jurisdictional High Court in the case of M/s.India Comnet International Vs. ITO in [2007 (7) TMI 233 - MADRAS HIGH COURT] wherein held that interest received on export profit deposited with bank does not qualify for relief u/s.10A of the Act. Further, the Delhi High Court in the case of M/s.Thomson Press (INDIA) Ltd. Vs. CIT in [2015 (10) TMI 756 - DELHI HIGH COURT] wherein held that the interest cannot be considered as profit and gain derived by assessee from the eligible undertaking as it does not bear a direct nexus with the activities of the eligible undertaking only, the profit and gains of assessee which has direct nexus with the undertaking to which S.10A apply, interest would be excluded from the income of assessee. Interest income earned by the assessee from the bank deposits cannot be included as profit and gain from eligible undertaking so as to grant deduction u/s.10A of the Act and it is to be excluded from profit and gains of the business undertaking. - Decided against assessee
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