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2019 (2) TMI 1467 - ITAT MUMBAIDeduction u/s. 10AA - SEZ unit - Trading activity in diamond and gold jewellery to be considered as service activity or not - Instruction No.4/2004- HELD THAT:- In view of the decision of the Tribunal order in assessee’ own case [2017 (2) TMI 109 - ITAT MUMBAI] we uphold the order of the Ld. CIT(A) in allowing the claim for deduction u/s. 10AA of the Act for the assessee as held that the assessee in the case on hand is eligible for deduction of its income earned from trading exports of diamonds under section 10AA of the Act and therefore uphold the finding of the learned CIT(A) on this issue in the impugned order - Ground No.1 of the grounds of appeal of the Revenue is dismissed. Interest receipts on fixed deposit kept with bank by way of margin money- HELD THAT:- We observe that the Tribunal in the A.Y. 2011-12 held that interest income from fixed deposit kept with bank by way of margin money for the purpose of business of import / export trading in diamonds constitutes business receipts for the purpose of deduction u/s. 10AA There is no independent finding by the CIT(A) as to whether this interest was earned on fixed deposits utilized for margin money and used for the purpose of business. Ld. CIT(A) simply extracted the submissions of the assessee and following the order of the Tribunal deleted the interest disallowance. In the facts and circumstances, we are of the view that this issue has to be reexamined by the Assessing Officer after obtaining the necessary information from the assessee to prove that this interest income was earned only on Fixed deposits made on margin money utilized for the purpose of business and not out of any surplus funds which were used for earning interest income by the assessee. Therefore, the Assessing Officer is directed to examine the issue afresh in the light of the evidences produced before him - Appeal of the Revenue is partly allowed for statistical purpose
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