Case Law Details
DCIT Vs. SMS Paryavaran (P) Ltd. (ITAT Delhi)
The Hon’ble ITAT held that interest earned on FDR maintained with the bank for obtaining bank guarantee for performance of any business activity even if related to any govt infrastructure project can’t override the basic structure of Sec 80IA which intends to provide deduction only in respect of activities directly related to the process of providing infrastructure facilities. Income cannot be said to be derived from an activity merely by reason of the fact that activity was performed to earn the said income in an indirect, incidental or remote manner.
FULL TEXT OF THE ITAT JUDGMENT
This appeal is filed by the Revenue against the order dated 18/10/2012 passed by CIT(A)-XII, New Delhi for Assessment Year 2009-10.
2. The grounds of appeal are as under:-
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