TMI Blog2017 (5) TMI 1763X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer has mentioned that the interest income is earned on the deposits made for securing the Bank Guarantee. Accordingly AO is directed to verify the fact that the interest income in question has been earned from the deposits made for securing the Bank Guarantee and then decide the issue in the light of the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Motorola India Electronics Pvt. Ltd[ 2014 (1) TMI 1235 - KARNATAKA HIGH COURT] - Appeal of revenue is allowed for statistical purpose. - I.T. A. No.863/Bang/2016 - - - Dated:- 19-5-2017 - SHRI VIJAY PAL RAO AND SHRI INTURI RAMA RAO, JJ. Appellant By : Shri G. Kamaldhar, Standing Counsel. Respondent By : Shri Tanmayee Rajkumar, Advocate. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no specific provision in section IOA warranting exclusion of above expenses from total turnover also. 4. On the facts and circumstances of the case, whether the CIT(A) erred in holding that kss from non-eligible unit to be allowed for carry forward without set off against income from eligible unit, without appreciating that fact that as per provisions of Section IOA, deduction u/s IOA has to be allowed from the total income of the assessee and as per the total income should be computed from various sources after set off of losses from one source against income from other sources under the same head Of income in terms of sec.70(1). 4. For these and other grounds that may be urged upon, the order Of the CIT(A) may be -versed and that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its made for obtaining Bank Guarantee therefore this income has direct nexus with the business of the industrial undertaking and eligible for deduction under Section 10A of the Act. The learned Authorised Representative has also filed a letter dt.28.2.2014 which was before the Assessing Officer and submitted that the assessee has explained this fact before the Assessing Officer. He has relied upon the decision of the Hon'ble jurisdictional High Court in the case of CIT Vs. Motorola India Electronics Pvt. Ltd. (supra). 7. Having considered the rival submissions as well as the relevant material on record, we note that the Hon'ble High Court in the case of CIT Vs. Motorola India Electronics Pvt. Ltd. (supra) while dealing with an is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the first substantial question of law in ITA No.447/2007 is answered in favour of the assessee and against the revenue. Thus in case if the interest income is earned from the deposits made in connection with the business activity of the undertaking then the same is eligible for deduction under Section 10A/10B of the Act. In the case of the assessee neither the Assessing Officer nor the CIT (Appeals) has verified this fact though the assessee in its reply before the Assessing Officer has mentioned that the interest income is earned on the deposits made for securing the Bank Guarantee. Accordingly, in view of the facts and circumstances of the case, the Assessing Officer is directed to verify the fact that the interest income in questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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