TMI Blog2015 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Subsection (4), the assessee is entitled to the benefit of exemption of the said amount as contemplated under Section 10B of the Act. Therefore, the Tribunal was justified in extending the benefit to the aforesaid amounts also. We respectfully following the aforesaid decision of Hon’ble Karnataka High Court in the case of Motorola India Electronics Pvt. Ltd (2006 (11) TMI 541 - ITAT BANGALORE), hold that Assessee is eligible for deduction u/s. 10B of the Act on the interest received on deposits placed with Electricity Department. We thus direct accordingly. - Decided in favour of assesse. - I.T. A. Nos. 374 & 766 /AHD/2011 - - - Dated:- 26-3-2015 - Shri Mukul Kr. Shrawat And Shri Anil Chaturvedi JJ. For the Appellant : Shri Mehul. R. Shah, A.R. For the Respondent : Shri Roop Chand, Sr. D.R. ORDER Per Shri Anil Chaturvedi,A.M. 1. These two appeals, one filed by the Assessee and the other filed by the Revenue, are against the order of CIT(A)-V, Surat dated 16.11.2010 for A.Y. 2006-07. 2. The relevant facts as culled out from the material on record are as under. 3. Assessee is a partnership firm stated to be engaged in the business of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with it, he was of the view that it had no direct relation with the business of the Assessee and therefore not eligible for deduction. He accordingly ignored the interest received from both the sources for the purpose of deduction u/s. 10B. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A). Ld. CIT(A) noted that identical issue arose in A.Y. 2005-06 in Assessee s own case and following the order of his predecessor, granted partial relief by deleting the addition of ₹ 17,60,586/- on account of interest income earned from banks but however confirmed the addition of ₹ 1,02,000/- on the interest earned on deposit with Electricity Board. The relevant finding of ld. CIT(A) is as under:- Decision: I have considered rival contentions. In the appellant own case for the A.Y. 2005-06, similar addition were made by the Assessing Officer. It is seen from the record that in the appeal my predecessor has deleted the addition made on account of interest income from F.D.R. and confirmed the addition of interest income from Electricity Board. Following my predecessor's order the addition of ₹ 17,60,586/- on account of interest income earned on F.D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extent ofRs.9,45,200/- is hereby deleted the balance amount of ₹ 2,02,386/- is confirmed 4.2. On the basis of observation of Id.CIT(A) since the assessee has not proved the nexus in respect of part of interest, therefore, the view taken by the Id.CIT(A) appears to be a justified view, hence, hereby confirmed. 9. Before us, the ld. A.R. therefore submitted that the as far as issue with respect to interest earned on fixed deposits is concerned, since it has been decided in favour of Assessee in earlier year, in the year under consideration the issue has to be decided in favour of Assessee in view of the decision of Tribunal in Assessee s own case. With respect to the interest earned on deposits placed with Electricity Department ld. A.R. submitted that before A.O and ld. CIT(A), Assessee had relied on the decision of Bangalore Tribunal in the case of ACIT vs. Motorola India Electronics Pvt. Ltd. 114 ITD 387 but was found not applicable to Assessee s case and the same was not considered by them. He further submitted that the aforesaid decision of Tribunal which was relied by Assessee, before A.O and ld. CIT(A) has been upheld by Hon ble Karnataka High Court in ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xport of articles. But Subsection (4) explains what is the profit derived from export of articles as mentioned in Subsection (1) The substituted Subsection (4) says that profits derived from export of articles or things or computer software shall be the account which bares to the profits of the business of the undertaking and not the profits and gains from export of articles. Therefore, profits and gains derived from export of articles is different from the income derived from the profits of the business of the undertaking. The profits of the business of the undertaking includes the profits and gains from export of the articles as well as all other incidental incomes derived from the business of the undertaking. It is interesting to note that similar provisions are not there while dealing with Computation of income under Section 80HHC. On the contrary, there is specific provisions like Section 80HHB which expressly excludes this type of incomes. Therefore, in view of the aforesaid provisions, it is clear that, what is exempted is not merely the profits and gains from the export of articles but also the income from the business of the undertaking. 8. In the instant, case, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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