TMI Blog2011 (8) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... he words “derived from” is narrower as compared to that of the words “attributable to”. - interest income is not derived from the eligible business and accordingly the assessee is not entitled to the deduction under section 80IB of the Act. - ITA No. 2134/Mum/2009 - - - Dated:- 24-8-2011 - SHRI D.K.AGARWAL AND SHRI RAJENDRA SINGH JJ Represented By: Appellant by: Mrs. Aarti A. Sathe Respondent by: Shri A.K. Nayak ORDER PER D.K.AGARWAL (JM) This appeal preferred by the assessee is directed against the order dated 3.3.2009 passed by the Learned Commissioner of Income Tax (A) for the assessment year 2006-07. 2. Briefly stated facts of the case are that the assessee, is a family trust and carrying on the business ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on the decision in CIT V/s Siddaganga Oil Extractions Pvt.Ltd.(1993) 201 ITR968(Kar.) and Sterling Foods V/s CIT (1984) 150 ITR 292 (Kar.), held that the assessee s claim for scrap sales amounting to Rs.76,88,500/- is not allowable for the purpose of deduction under section 80IB. of the Act. Apart from this the AO further noted that the assessee has credited Rs.5,980/- as interest income from bank in respect of Unit II and claimed deduction under section 80IB(4) of the Act. The AO after relying on the decision of the Hon ble Supreme Court in Tuticorin Alkali Chemicals And Fertilizers Ltd. V/s CIT (1997) 227 ITR 172, the decision of the Hon ble Bombay High Court in CIT V/s Ravi Ratna Exports (P.) Ltd. (2000) 246 ITR 443 (Bom) and the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.1 taken by the assessee in respect of the scrap sales is to be set aside to the file of the AO and Ground No.2 taken by the assessee in respect of the interest receipt on bank deposits is to be dismissed. 5. Having carefully heard the submissions of the rival parties and perusing the material available on record, we find merit in the submissions of the parties that both the grounds are covered by the order of the Tribunal in the assessee s own case (supra). In ground No.1, which is in respect of scrap sales, the Tribunal vide paragraph 8 of its order has held as under: 8. From the orders of the lower authorities, it is not clear as to how the scrap was generated and therefore, in order to verify whether the scrap had direct nexus wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the directions given by the Tribunal in paragraph 8 of the said order and according to law after providing reasonable opportunity of being heard to the assessee. Accordingly, Ground No.1 taken by the assessee is partly allowed for statistical purposes. 8. With regard to the interest income of Rs.5,980/-, we respectfully following the order of the Tribunal (supra), and the decision of the Hon ble Supreme Court in the case of Liberty India (supra) hold that the interest income is not derived from the eligible business and accordingly the assessee is not entitled to the deduction under section 80IB of the Act. The ground taken by the assessee is, therefore, rejected. 9. In the result, the assessee s appeal stands partly allowed for sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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