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2018 (12) TMI 566 - MADRAS HIGH COURTMAT computation - loss arising from foreign exchange fluctuation as an unascertained liability to be added back to the book profit as per Clause (c) of Explanation to Section 115JA - Held that:- The scheme of Section 115J is a complete code by itself and a decision rendered in respect of a deduction under Section 37 of the Act cannot be made applicable. This very question was considered in the case of NHPC Limited [2018 (4) TMI 47 - PUNJAB AND HARYANA HIGH COURT] in which one of the questions, to be precise question no.6 was relating to computation of book profits for the purpose of Minimum Alternate Tax (MTA) under Section 115JB. In the said case, the Assessing Officer held that the amount was merely provisional and at the time of actual repayment of loan, the position may vary resulting in a profit and therefore, it was not an ascertained liability. Though before us the Revenue contended that the assessee has made only a provision, we find that nowhere in the assessment proceedings such a statement was made. Even while passing the assessment order, the Assessing Officer has shown the same as loss on account of exchange fluctuation and not as a provision - Decided in favour of the assessee. Income eligible for deduction under Section 80IB - Interest from deposit with Tamil Nadu Electricity Board and Interest received from housing and vehicle loans advanced to its employees - Held that:- It is not disputed by the Revenue that the assessee borrows amounts from the bank at a higher rate of interest and extends housing and vehicle loans to its employees at subsidised rates. Thus, these loans and advances being incentives to the employees, has to be held to be directly relatable to the interest of industrial undertaking. In Arul Mariammal Textiles Limited [2018 (8) TMI 1729 - MADRAS HIGH COURT] we had an occasion to consider similar issue and after taking note of several decisions on the point, decided the question in favour of the assessee holding that the interest income earned by the assessee is merely incidental and not the prime purpose of doing the act in question -it is not the case of the Revenue that the amount was deposited in fixed deposit solely for the purpose of earning interest nor it is the case of the Revenue that the amount, which was deposited in fixed deposit was a surplus money, which was lying idle in the hands of the Assessee. - Decided in favour of assessee.
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