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2023 (1) TMI 224 - KARNATAKA HIGH COURTComputation of deduction u/s 10A - Income derived from rental income from Infosys BPO Ltd and BSNL Chennai Ltd as profits derived under Section 10A - HELD THAT:- Undisputed facts of the case are, assessee is situated in the STPI and is a 100% EOU. A portion of the premises which was taken on lease has been given on sublease to the two units and the assessee has received certain sum of money as rental income. In the case of Hewlett Packard [2017 (11) TMI 205 - KARNATAKA HIGH COURT] has held that the interest earned on the deposit and interest income of the staff loans are also eligible for deduction u/s 10A of the IT Act. Admittedly, the income earned as interest on the staff loans is not in any way connected with the business of Hewlett Packard, which was under consideration before the full Bench. In the case on hand, the assessee was receiving the amount as rental income and in Hewlett Packard, the amount was received as interest on deposits and the staff loans. Therefore, in our considered view, the conditions such as location of unit in an STPI having been complied with, the benefit of Section 10A of the IT Act must be available to the assessee in this case also. These appeals must fail and they are accordingly dismissed.
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