Case Law Details
M/s. OMIL JSC (JV) Kameng Kota. Vs Dy. CIT (ITAT Jaipur)
The limited issue under consideration relates to whether interest on income tax refund is eligible for deduction under section 80IE of the Act. The contention of the assessee is that it has only one business undertaking and the only business of the undertaking is that of manufacturing activity and any income derived by the undertaking, including the interest income, can only be derived by the undertaking whole of which is eligible for deduction under section 80IE of the Act. It was accordingly contended that any interest even if the same has accrued on account of excess deduction of taxes at source, the same would be in nature of “business income” and not income under the head “Income from other sources”.
We are unable to accept the contention of the assessee that the interest earned on income-tax refunds was assessable as part of the profits and gains of the power generation business. In our view, the interest was assessable under the head “Income from other sources” as rightly assessed by the Assessing Officer. In view of the same interest on income tax refund is held not eligible for deduction under section 80IE of the Act and the action of the ld CIT(A) is hereby confirmed. In the result, sole ground of appeal is dismissed.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal filed by the assessee against the order of ld. CIT(A)-1, Jaipur dated 06.11.2017 for Assessment Year 2013-14 wherein the assessee has taken the following ground of appeal:
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