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TMI Blog2021 (3) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 20,37,345/-. According to the assessee, even if the interest income from Fixed Deposit does not qualify for the deduction u/s 80IC, still it being a business receipt should be given the benefit of netting. 3. The Ld. A.R Shri S. Jhajharia, FCA submitted that the revised ground no. 2 in respect of interest income survives and according to him only the net interest (i.e. interest income- interest paid-expenses) be taken out of the deduction u/s 80IC. According to Ld. A.R, the interest receipt from FD was business income, because the FD's were maintained in the bank for the purpose of issue of bank guarantee which were in-turn required for purchase of raw material from M/s SAIL. In order to substantiate this fact according to Ld. A.R, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foresaid discussion, we are not repeating the same again for the sake of brevity. We note that in the revenue appeal for the same assessment year i.e. AY 2014-15 we have confirmed the action of Ld. CIT(A) in respect of claim of the assessee in respect of interest income as not eligible for deduction u/s 80IC wherein we held as under: "3. Aggrieved the assessee preferred an appeal before the Ld. CIT(A), who in respect of the AO's action disallowing interest income of Rs. 20,37,345/- has held as under: "In view of the above discussion and respectively following the decision of the jurisdictional High Court in the case of Reckitt Benckiser (India) Vs. Addl. Commissioner of Income Tax (supra), I am of the view that there is no infirmity&nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in this case has claimed to have made the FDs for the purpose of procuring bank guarantee which was a condition precedent for procurement of raw material from M/s SAIL. And therefore, according to us, the interest income even if it does not qualify for deduction u/s 80IC of the Act being not having first degree nexus, still the nature of the receipt since being business in nature and not from other sources [refer CIT vs. Nirma Ltd. (supra)] needs to be treated as business receipt, if the facts are correct, which may be verified by the Ld CIT(A), since we have restored certain issues back to him, while adjudicating the Revenue Appeal for this assessment year. And if the contention of the assessee is found to be correct, then netting sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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