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2017 (11) TMI 1293 - AT - Income TaxRevision u/s 263 - deduction under section 80IB on the interest income was not allowable because the interest on fixed deposit was not derived from the industrial undertaking and there was no direct nexus between the interest income and the industrial activity carried out by the assessee - Held that:- We conclude that no enquiry of any kind was carried out by the Assessing Officer on the issue of availability of deduction on interest income and it is a case of complete “lack of Inquiry” by the Assessing Officer. Before Ld. CIT, the assessee failed to establish direct nexus between the borrowed funds and the purchase of fixed deposits, and thus, he is correct in holding that interest on fixed deposit was not derived from the industrial undertaking. The Assessing Officer committed error in allowing deduction on such interest income without carrying out any enquiry. In view of the facts and circumstances of the case, we do not find any error in the order of the Ld. CIT. Accordingly, we uphold the finding of the Ld. CIT in setting aside the order of the Assessing Officer and directing to re-compute the income. The grounds of the appeal are accordingly dismissed.
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