Case Law Details
Quadrant EPP Surlon Vs. ITO (ITAT Delhi)
Interest on debtors amounting to Rs. 5,22,012, it is seen as an admitted position that this amount represents interest received from debtors for late payment of sale proceeds. Debtors have obviously arisen from the eligible business of the enterprise. Such interest partakes the character of the sale proceeds to which it relates in so far as the availability of deduction is concerned. The same is, therefore, eligible for deduction under section 80-IC as it is income derived from the sale proceeds of the eligible business.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal filed by the assessee is directed against the order passed by the Commissioner (Appeals) on 21-11-2013 in relation to the assessment year 2009-10.
2. The only issue raised in this appeal is against the denial of deduction under section 80IC in respect of four items of income totaling Rs. 12,21,572, which were classified by the assessee under the head ‘Other income.’
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