TMI Blog2010 (4) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80 IB of the said Act, the Tribunal held that the interest income received on delayed realisation of sale proceeds took the character of sale proceeds and, after placing reliance on the decision of the Madras High court in the case of Commissioner of Income-tax v. Indomatsushita Co. Ltd: [2008 -TMI - 9851 - MADRAS High Court], held that the said interest income could be excluded from the purview of deduction under Section 80 IB of the said Act - held that - We find no infirmity in the view taken by the Tribunal on this aspect of bad debts - interest becomes part of the sale price and, therefore, would be clearly derived from the sales made and was not divorced therefrom. Consequently, it was held that such interest would be the direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Tribunal, which, by the impugned order, has dismissed the said appeal. The tribunal came to the conclusion that the bad debts issue had already been considered in the original proceedings under Section 143(3) and, therefore, the same could not be reopened in reassessment proceedings. We find no infirmity in the view taken by the Tribunal on this aspect of the matter. 3. As regards the second issue, which pertains to deduction under Section 80 IB of the said Act, the Tribunal held that the interest income received on delayed realisation of sale proceeds took the character of sale proceeds and, after placing reliance on the decision of the Madras High court in the case of Commissioner of Income-tax v. Indomatsushita Co. Ltd: 286 ITR 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source. 5. Considered from this point of view, interest becomes part of the sale price and, therefore, would be clearly derived from the sales made and was not divorced therefrom. Consequently, it was held that such interest would be the direct result of the sale of goods and the income would definitely fall within the expression "derived from" the business of industrial undertaking as appearing in Section 80 IB of the said Act. 6. Following the said decisions, we find that the view taken by the Tribunal, although it has placed reliance only on the decision of the Madras High Court, is the correct view. 7. No substantial question of law arises four our consideration. The appeal is dismissed. BADAR DURREZ AHMED, J V.K. JAIN, J ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
