2017 (4) TMI 1501 - HC - Income Tax

Disallowance u/s 80IA - receipt under the head Insurance charges, postage, FDR, Interest and interest on IT refund inclusion or not - HELD THAT - The issue is now covered by the decision of the Supreme Court in Liberty India Vs. Commissioner of Income Tax 2009 (8) TMI 63 - SUPREME COURT wherein it has been held that this income can betaken into consideration while granting benefit under Section 80IA. - Decided against assessee.

Summary

Issues:
Interpretation of Section 80IA for income under various heads - Insurance charges, postage, FDR, Interest, and interest on IT refund.

Analysis:
The appellant challenged the Tribunal's decision confirming the orders of the CIT (A) and the AO regarding the income received under different heads. The appeal was admitted based on the substantial question of law related to the correct interpretation of Section 80IA for disallowing the company's claim on the mentioned receipts. The appellant argued that the authorities erred in deciding the treatment of the income under these heads. On the other hand, the respondent referred to the Supreme Court's decision in Liberty India Vs. Commissioner of Income Tax, (2009) 317 ITR 218 (SC), stating that such income should be considered for benefits under Section 80IA.

The Court noted the Supreme Court's decision, which clarified that the mentioned income can be taken into account for granting benefits under Section 80IA. Consequently, the issue was deemed to be conclusively settled in favor of the Department and against the assessee. As a result, the appeal was dismissed based on the Supreme Court's interpretation, which held significance in determining the treatment of income under the specified heads for the purpose of Section 80IA benefits.