TMI Blog2018 (6) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... ee - ITA. No. 6016/Del./2017 - - - Dated:- 18-5-2018 - Shri Bhavnesh Saini, Judicial Member For Assessee : Shri Salil Kapoor and Ms. Soumya Singh, Advocates For Revenue : Ms. Ashima Neb, Sr. D.R. ORDER This appeal by assessee has been directed against the order of the Ld. CIT(A), Haldwani, dated 21st February, 2017, for the A.Y. 2013-2014, challenging the order of Ld. CIT(A) in not allowing benefit of deduction under section 80IC of the I.T. Act, 1961. 2. Briefly, the facts of the case are that assessee filed return of income declaring NIL income after claiming deduction under section 80IC of the I.T. Act. The assessee is a firm consisting of four partners. The factory of the firm is located at Industrial Area of Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(A) and same submissions have been reiterated. The Ld. CIT(A) also noted that interest income is merely incidental to the industrial undertaking cannot be considered to have a direct nexus with it and if the industrial undertaking is the direct source of the income, then, it can be said that income has been derived from the industrial undertaking. The Ld. CIT(A) also noted that industrial undertaking should be the direct and immediate source of the income and not merely incidental to that income. The appeal of assessee was accordingly dismissed. 4. The appeal of assessee is time barred by four months. Assessee filed application for condonation of delay in which it is explained that assessee firm has four partners and is managed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... com 163 (Uttarakhand) vide Judgment dated 15th November, 2017 in I.T. Appeal Nos.24 of 2015 21 of 2017. Copy of the Judgment is filed by the Learned Counsel for the Assessee. Learned Counsel for the Assessee, however, submitted that security were deposited of the contract value in the form of bank draft/FDR/LDR/Bank guarantee in favour of the Executive Engineer, Electricity Store Division, Dehradun. It has direct link to the securing of the orders for the business of the assessee, otherwise, no sales would have been made by the assessee. Therefore, the interest on such FDRs has a direct link with the business of the assessee. Learned Counsel for the Assessee submitted that assessee had many options to give security deposit by way of draft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been recorded that the assessee in this year has earned interest income on FDRs which was pledged as performance guarantee in terms of contract awarded by UPCL for manufacture of electronic meters. The issue before the Tribunal was, Whether such interest income is eligible for deduction under section 80IC of the I.T. Act ? The Tribunal followed its own order in the case of same assessee in ITA.No.2556/Del./2013 for the very same assessment year under section 263 of the I.T. Act whereby similar claim of assessee have been denied. The Tribunal following its own decision in the case of the same assessee dismissed the appeal of assessee. Learned Counsel for the Assessee, therefore, fairly submitted that the order of the Tribunal have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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