TMI Blog2008 (8) TMI 981X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income on 10th Dec., 1999, admitting a total income of ₹ 11,99,560. The return was processed under s. 143(1)(a). Subsequently, assessment was reopened under s. 147 after issuance of notice under s. 148 on 15th Jan., 2003. The assessment under s. 143(3) r/w s. 147 was completed on 28th March, 2003, determining the total income at ₹ 96,60,427. While completing the assessment, the AO denied deduction under s. 80-IA in respect of miscellaneous income comprising of export incentives in the form of DEPB license of ₹ 15,27,436 and interest on margin money deposit of ₹ 17,31,444, which is earned out of the deposit made for opening of letter of credit. 3. On appeal, both the CIT(A) and the Tribunal confirmed the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t such income being part of the business income, it must follow that the income is derived from the industrial undertaking.' 6. Referring to the decision in National Organic Chemical Industries Ltd. vs. CCE AIR 1997 SC 690, the Division Bench held that the Supreme Court held the word 'derived' is usually followed by the word 'from', and it means get or trace from a source; arise from, originate in; show the origin or formation of. The Division Bench also followed the decision of this Court in CIT vs. Pandian Chemicals Ltd. (1998) 147 CTR (Mad) 5: (1998) 233 ITR 497(Mad). 7. In the said decision, this Court held that profits or gains eligible for deduction under s. 80HH must be derived from the actual conduct of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l undertaking. Having regard to the language of s. 80-I, in the face of the decisions of the apex Court which were consistently followed by this Court, we do not find any ground to admit the appeal on the first ground, viz., entitlement of the appellant to deduction under s. 80-I in respect of duty drawback. 6. In respect of the second question of law, i.e., the appellant is not entitled to deduction under s. 80-I in respect of interest earned on amounts retained by the bank, in the above quoted judgment, para 8 reads as follows : 8. As regards the second question, viz., entitlement of the appellant to deduction under s. 80-I in respect of the interest earned on amounts retained by the bank, the learned counsel for the appellant pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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