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TMI Blog2013 (6) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 80-IB(10) of the IT Act, 1961 on interest received of Rs. 13,40,853/- ignoring the decision of Hon'ble Supreme Court in the case of Liberty India vs. CIYT (183 Taxman 349). 2. Whether on the facts and in the circumstances of the case and in law, the Ld CIT (A) is justified in allowing claim u/s 80-IB(10) on interest income by following the decision in the case of CIT vs. Govinda Choudhary & sons (203 ITR 881) when this decision is not applicable in the case of this assessee. 3. Whether on the facts and in the circumstances of the case and in law, the Ld CIT A) has erred in allowing deduction u/s 80-IB(10) on interest income, when this income is merely attributable and incidental to business income and the same is not income derived fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned grounds. 5. During the proceedings before us, at the outset, Shri Vijay Mehta, Ld Counsel for the assessee mentioned that the only issues raised by the Revenue in the grounds relates to the allowability of deduction u/s 80-IB(10) in respect of interest received by way of belated payments of the trading of goods. Bringing our attention to the facts of the case, Ld Counsel mentioned that there is no dispute about the fact that the impugned interest relates to the interest received on account of delay in payments by buyers in respect of flats purchased by them. Considering the undisputed nature of the payments, Ld Counsel mentioned that the issue now stands covered by in favour of the assessee by the judgment of jurisdictional High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the assessee from the purchaser was a component of interest towards delayed payment of the price of the goods sold, supplied and delivered by the assessee. There could be no dispute about the position that the price realized by the assessee from the sale of goods manufactured by the industrial undertaking constituted a component of the profits and gains derived from the eligible business. The purchaser, on account of the delay in payment of the sale price also paid interest to the assessee. This formed a component of the sale price and was paid towards the lag which had occurred in the payment of the price of the goods sold by the assessee. On these facts, therefore, the payment of interest on account of the delay in payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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