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Rectifiable error in the order regarding exemption of interest incomes. Analysis: The petitioner claimed a rectifiable error in the Tribunal's order regarding exemption of certain interest incomes for the assessment year 1993-94. The interest incomes in question were on deposit towards bank guarantee money and deposit with APSEB. The petitioner referred to a decision of the Madras High Court and subsequent dismissal of SLP by the Apex Court, arguing that there was an error in the Tribunal's order as the law had become final. The Tribunal proceeded ex parte as the assessee was absent during the hearing dates. The Departmental Representative supported the petitioner's contentions for rectification of the order. The Tribunal noted that a previous petition had been rejected before the decision of the Apex Court in Pandian Chemicals Ltd v. CIT. The Apex Court's judgment clarified the interpretation of "derived from" in the Income-tax Act, emphasizing a direct nexus with the industrial undertaking for income to qualify for exemption. The Tribunal, based on the Apex Court's decision, found a rectifiable error in its previous order and held that the interest incomes were not derived from the industrial undertaking, thus not eligible for exemption under section 10B of the Income-tax Act. Consequently, the appeal of the assessee was dismissed, upholding the orders of the Revenue authorities. In conclusion, the Tribunal allowed the Miscellaneous Petition, rectifying the order dated 9-10-2001 based on the clarification provided by the Apex Court's judgment. The interest incomes were deemed ineligible for exemption, and the appeal of the assessee was dismissed.
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