TMI Blog2014 (9) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... nding before the Supreme Court. Following the aforesaid orders, the present appeal in respect of Serial Nos. (i) to (v) has to be dismissed and is accordingly so ordered. Interest income earned by the Appellant from investment deposit under Section 32AB of the Act in IDBI Bank - The appellant-assessee had deposited certain amounts in the account maintained under Section 32-AB of the Act with the Development Bank. The deposits so made were out of the sale proceeds i.e. income chargeable under the head Profits and gains of business or profession. Interest was earned on the said deposits and the appellant-assessee claims that the interest earned should be included in the income derived from the industrial undertaking and accordingly wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacture of fertilizers such as Urea, Ammonia at their plant in Hazira, District Surat, Gujarat (the undertaking), relates to the Assessment Year 1996-97. 2. The impugned order passed by the Income Tax Appellate Tribunal (Tribunal, in short) is dated 21.03.2014. 3. The issue raised by the appellant-assessee relates to deduction or coverage under Section 80-IA of the Income Tax Act, 1961 (Act, in short) in respect of the following incomes: i. Interest Income from employees on advances ii. Equipment Hire charges iii. Crane Hire charges iv. Ammonia Tank Wagon Hire Charges. v. Interest Income from Banks and Financial institutions vi. Interest income earned by the Appellant -from investment deposit under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from an industrial undertaking after a certain date etc. The expression ?derived from? refers to the first or the immediate cause/source of income earned, which in the present case would be the deposits in the bank and interest paid by the said bank and not the industrial undertaking. The aforesaid interest income, therefore, cannot be treated as income derived from the industrial undertaking covered under Section 80IA of the Act. The Tribunal has rightly relied upon the decision of the Supreme Court in CIT Vs. Pandian Chemicals Ltd., 262 ITR 278 (SC) in which it has been held that the word derived from is narrower than the word attributable to and the earlier term should be interpreted as something which has direct and immediate first s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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