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TMI Blog2014 (10) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... for purposes of Sections 80-IA/80-IB as such remissions (credits) would constitute independent source of income beyond the first degree nexus between profits and the industrial undertaking - Duty drawback receipt/DEPB benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80-IA/80-IB – Decided against assessee. Calculation of deduction u/s 80HH and 80I – Interest income without reducing interest expenses excluded or not - Held that:- Following the decision in Commissioner of Income Tax -Ahmedabad-III Versus Nirma Ltd. [2014 (10) TMI 388 - GUJARAT HIGH COURT] - Ninety per cent of not the gross rent or gross interest, but the net thereof shall have be excluded - the amounts are to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luded for the purpose of calculating deduction u/s. 80HH and 80I of the Act? (2) Whether, in the facts and circumstances of the case, the ITAT was right in law in holding that for the purpose of calculating deduction u/s. 80HH and 80I of the Act, gross interest income without reducing therefrom the interest expenditure, is required to be excluded? 2. The assessee firm is engaged in the business of processing tobacco. During the year under consideration, the assessee claimed deduction u/s 80HH and 80-I. The appellant was denied deduction under sections 80HH and 80I of the Act on the interest amounting to ₹ 190034/- on the deposit with IDBI as required u/s 32AB of the Act as well as interest amounting to ₹ 109490/- on depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decisions of the Apex Court and observed that whatever the purpose of making the fixed deposit, the basisc fact remains that interest has been derived from the bank and not from the industrial undertaking and that such interest income does not have a direct nexus with the undertaking. The Tribunal observed that both the amounts of interest have been rightly excluded for the purposes of computation of deduction u/s 80H and 80-I. 4. The issues involved in the present appeals are squarely covered by the decisions of the Apex Court and this Court. Mr. Soparkar has drawn our attention to the unreported decision of this Court in the case of Commissioner of Income Tax, Ahmedabad vs. Nirma Ltd. passed in Tax Appeal No. 811 of 2013 on 27. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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