TMI Blog2016 (1) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee in the relevant period as having a direct nexus with and being derived from its ITES business and, therefore, to include it while computing the eligible deduction u/s.10A - Decided against revenue - ITA No. 7610/MUM/2011 - - - Dated:- 6-1-2016 - SHRI JASON P. BOAZ ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER Appellant by : Shri Vivek Ojha Respondent by : Shri Dinesh Vyas ORDER PER JASON P. BOAZ, A.M: This appeal by the Revenue is directed against the order of the CIT(Appeals)-18, Mumbai dated 02/08/2011 for Asst year 2007-08. 2.1 The facts of the case, briefly, are as under:- 2.1 The assessee, a company engaged in providing business process outsourcing ( BPO ), IT enabled services, fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s.10A/10B though the same were not derived from export of ITES services without appreciating the facts of the case. , On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the ratio, of the judgement of the Hon'ble Apex Court in the case of Liberty India Ltd. vs. CIT (317 ITR 218) wherein it is held that certain income may constitute profit from business under section 28 but it cannot be construed as profits derived from Industrial undertaking and the decision of Hon'ble ITAT, 'E' Bench, Mumbai, in the case of Tricom India Limited vs. 'ACIT (36 SOT 302) wherein it is held that interest income is not eligible for deduction u/s.10A/10B . The Appellant prays that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial decisions cited. We find that the very same issue as the issue before us has been considered and decided by a Co-ordinate bench of this Tribunal in the case of the assessee s sister concern, M/s. Syntel Limited, in ITA No.3413/Mum/2007 dated 31/08/2015 at para 5 and 5.1 thereof. The Co-ordinate bench has held that interest income earned by the assessee has a direct nexus and was derived from the assessee s business and was, therefore, entitled to be considered for deduction u/s.10A of the Act. Following the aforesaid decision of the Co-ordinate Bench in the case of M/s. Syntel Limit (supra), we uphold the impugned order of the Ld. CIT(A) in directing the Assessing Officer to consider the interest income of ₹ 53,23,340/- earn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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