Income Tax Appellate Tribunal - Delhi
Sudhir Genset Ltd, vs Department Of Income Tax on 6 September, 2007
ITA NO. 4518/Del/2007
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "I" NEW DELHI
BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER
AND
SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER
I.T.A. No. 4518/Del/2007
A.Y. : 2004-05
DCIT, Circle 9(1), vs. M/s Sudhir Genset Ltd.,
Room No. 163, CR Building, 507, International Trade tower,
IP Estate, Nehru Place,
New Delhi - 110 002 New Delhi
(PAN/GIR NO. : AABCS6697K)
(Appellant ) (Respondent )
Asseessee by : Sh . M.S. Sahni, Advocate
Department by : Sh. A.K. Monga, Sr. D.R.
ORDER
PER SHAMIM YAHYA: AM This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 06.09.2007 pertaining to assessment year 2004-05.
2. The issue raised is that Ld. Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to include the interest income of the assessee company from FDRs kept as margin money with bank while computing the deduction u/s 80IB. 1
ITA NO. 4518/Del/2007
3. In this case the Assessing Officer had not considered interest on FDRs as profit from Industrial Undertaking while working out the claim of section 80IA of the IT Act.
4. Upon assessee's appeal Ld. Commissioner of Income Tax (Appeals) has decided the issue in favour of the assessee.
5. Against this order the Revenue is in appeal before us.
6. Both the counsel fairly agreed that now the issue stands covered against the assessee by the decision of the Hon'ble Apex Court in the case of Liberty India vs. C.I.T. [317 ITR 218] (SC). In this case the Hon'ble Apex Court has expounded that section 80IA and section 80IB are a code by themselves as they contain both substantive as well as procedural provisions. Section 80IB provides for the allowing of deduction in respect of profits and gains derived from the eligible business. The connotation of the words "derived from" is narrower as compared to that of the words "attributable to". By using the expression "derived from" Parliament intended to cover sources not beyond the first degree.
7. Respectfully, following the above precedent, we hold that the interest income earned by the assessee is not eligible for deduction u/s 2 ITA NO. 4518/Del/2007 80IB and the same cannot be said to have been derived from the eligible business.
8. In the result, the appeal filed by the revenue is allowed.
Order pronounced in the open court on 17/03/2011 upon conclusion of hearing.
Sd/- Sd/-
[I.P. BANSAL]
BANSAL] [SHAMIM YAHYA]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Date 17/03/2011
SRB
Copy forwarded to: -
1. Appellant 2. Respondent 3. CIT 4. CIT (A)
5. DR, ITAT
TRUE COPY
By Order,
Deputy Registrar,
ITAT, Delhi Benches
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