TMI Blog2016 (6) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... ra Kumar Yadav And And Shri Rajesh Kumar, JJ. By Appellant : Shri Dinesh Vyas, A.R. By Respondent : Shri Vachaspati Tripathi, D.R. ORDER Shailendra Kumar Yadav, This appeal has been filed by assessee against the order of Commissioner of Income-Tax (Appeals)-18, Mumbai, dated 22.08.2014 for A.Y. 2010-11 on following grounds: I On the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) XVIII, Mumbai ( the CIT(A) ) has erred in upholding/ confirming the order of the Assistant Commissioner of Income Tax Range 8(3), Mumbai ( the ACIT ) of not considering the Appellant Company s claim, that the interest income aggregating to ₹ 12,86,93,787/- is in the nature of Busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rising for consideration is whether the assessee is eligible f or claiming of exemption under section 10A, in respect of interest income earned by it. While the assessee has claimed exemption under section 10A on the interest income of ₹ 1,17,23,280, on the reasoning that it was derived from the business of undertaking. Per-contra, it is the stand of the Department that the interest income having not been derived from the business of the undertaking, it is to be assessed as income from other sources and assessee is not eligible for claiming deduction under section 10A. However, as could be seen, similar issue arose in case of assessee's sister concern M/s. Syntel Ltd. for the assessment years 1997-98, 1998-99 and 2001-02. The Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned 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 t o consider the interest income of ₹ 53,23,340/- earned by the assessee 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 of the Act. It is accordingly ordered. Consequently, the grounds of appeal raised by Revenue are dismissed. 7. No material difference in fact fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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