TMI Blog2010 (9) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... sment years 2005-06, 2006-07 and 2007-08 respectively. In assessment year 2006-07, the assessee is also challenging the order of learned CIT(A). 2. The common dispute involved in all the appeals of the revenue is whether learned CIT(A) is justified in directing the Assessing Officer to allow the payment made by the assessee in the PF and ESI accounts before due date of filing of the returns. 3. With the assistance of learned representatives, we have gone through the record carefully. Assessing Officer has made a disallowance of Rs. 11,51,810, Rs. 13,13,050 and Rs. 23,64,739 under section 36(1)( va ) of the Income-tax Act, 1961, in assessment years 2006-07, 2005-06 and 2007-08 respectively. These disallowances have been made by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the record carefully. We find that this issue is squarely covered by our order dated 24-9-2010 passed in ITA No. 3486/Del/2010 in assessment year 2005-06. After considering the issue, we have upheld the exclusion of interest income from the eligible profit for the purpose of computation of income admissible under section 80-IB because interest income earned by the assessee on the deposits made for availing CC facility or as a margin money for letter of credit etc. was held to be assessable as income from other sources. The order of Tribunal reads as under : "This appeal by the assessee is directed against the order of learned CIT(A)-XII, New Delhi dated 8-3-2010 for the assessment year 2005-06. The grounds raised by the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits/FDRs attributable to Silvasa Unit, Jammu and Athal as business profit from the industrial undertaking, which were kept at margin money, while working out the claim of deduction under section 80-IB of Income-tax Act, are misconceived and incorrect. (5) The appellate order is contrary to the facts and law of the case. 2. The brief facts of the case that it is noticed by the Assessing Officer in the assessment order that the assessee has claimed deduction under section 80-IB at Rs. 19.68,83,562 in respect of the profits derived from four units situated at Silvasa (2 units), Jammu and Athal. It is further noted by the Assessing Officer that a close examination of computation of deduction shows that while other income including th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the assessee under section 80-IB with regard to this interest income and deduction under section 80TB was restricted to Rs. 19,11,11,362 as against Rs. 19,68,83,562 claimed by the assessee. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A) but without success and now, the assessee is in further appeal before us. 3. The learned Authorised Representative for the assessee could not point out any mistake in the order of authorities below. He could not point out as to how the judgment of Hon ble jurisdictional High Court rendered in the case of CIT v. Shri Ram Honda Power Equip ( supra ) is not applicable in the present case. It was also submitted by the learned Authorised Representative that in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and hence, deduction is not allowable to the assessee under section 80-IB for this interest income in question and hence, we decline to interfere in the order of learned CIT(A) on this issue. In the result, the appeal of the assessee is dismissed." 6. In view of the findings of the Tribunal in assessment year 2005-06, we do not find any merit in the first ground of appeal raised by the assessee. The assessee is not entitled for deduction on interest income under section 80-IB of the Act. 7. The second grievance of the assessee is that learned CIT(A) has erred in upholding the disallowance of expenses of Rs. 22,20,155 under section 14A of the Act. The brief facts of the case are that the assessee has made investment of Rs. 66,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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