Case Law Details
Case Name : Tricom India Ltd. Vs. ACIT (ITAT Mumbai)
Related Assessment Year : 2005- 2006
Courts :
All ITAT ITAT Mumbai
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RELEVANT PARAGRAPH
11. The learned counsel for the assessee has vehemently argued that in this case interest from deposit was offered as business income and was also assessed as business income and therefore, automatically once it is assessed as business income then the same becomes eligible for deduction u/s.10B.
On careful consideration we find that though these arguments look attractive but not correct. For this we have to refer to the famous decision of the Hon’ble Supreme Court in the case of CIT vs. Sterling Foods (supra). In that case the question arose whether receipt from sale o...
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My Client is running a manufacturing unit in j&K AND claming Deduction 80IB During the course of BUSSINES the assess has earned interest of Rs 34.11 lacs on bank FDRS AND Rs 23.20 lacs interest now AS per assessment order interest income has not been risen from manufacturing activity and thus was not eligible for deduction under section 80IB
HOW INTEREST RS 34.11 IS RECEIVED
As the assess is importing raw material for various countries .The payment is made through letter of credit for whic Bank gurentee is required so fdrs were taken so that margin of 25% is given out of them this how rs 34.11 interest is earned
how interest Rs 23.20 is RECEIVED
AS PER TERM & AGREEMENT SUPPLIES TO DEBTOR ARE RECIVIBLE IN 180 DAYS BUT PAYMENT IS RECEIVED IN 300 DAYS OVER DUE CHARGES ARE RECEIVED FOR SUPPLIER
PLEASE LET ME NO WHETHER IT IS ALLOWED U/S80IB OR NIT