9911796707
TMI Blog2014 (11) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the shares, which they propose to purchase between the date of application and date of allotment of shares or rejection of application, as the case may be, the amounts yielded interest - The interest so yielded cannot be said to be an income derived from 100% export activity - Before it has allotted shares, the assessee has taken away the money deposited by the intending purchasers of shares and has invested in some companies - The interest that is earned from such deposits was sought to be clubbed with the amount representing profits and gains derived from 100% export activity - thus, the order of the Tribunal is partly set aside regarding the interest received against public issue of shares and interest earned on ICDs and the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner of Income Tax. The appeal was rejected, through order, dated 20.08.1998. Thereupon, the respondent filed I.T.A.No.764 of 1998, before the Tribunal. The appeal was allowed, and all the three amounts, referred to above, were held permissible for exemption. Heard Sri S.R.Ashok, learned Senior Counsel for the Department, and Sri S.Ravi, learned Senior Counsel for the respondent. The Parliament intended to encourage the entrepreneurs to export the products from India. As part of that, it incorporated Section 10B of the Act. Sub-section (1) thereof, as it stood before the provision was amended in the year 2001, reads as under: 10B. Special provision in respect of newly established hundred per cent export-oriented un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the shares, which they propose to purchase between the date of application and date of allotment of shares or rejection of application, as the case may be, the amounts yielded interest. The interest so yielded cannot be said to be an income derived from 100% export activity. It is no part of the scheme of any export that the agency must mobilise resources by going for public issue, much less, that such an agency is entitled to appropriate the interest that is derived, on account of its own delay in finalising the issue of shares. The third component stands on a still fragile footing. Before it has allotted shares, the respondent has taken away the money deposited by the intending purchasers of shares and has invested in some companies. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be a good law. It is brought to our notice that the Tribunal itself has rectified its order in Shiva Shankar Granites (P) Limiteds case (4 supra), in the light of the judgment of the Supreme Court in Pandians case (3 supra). We, therefore, partly allow the appeal, setting aside the order of the Tribunal, in so far as it relates to items (b) and (c) claimed by the respondent, viz., (b) Interest given by the banks in respect of the moneys received by the said banks on behalf of the assessee company against the public issue of shares: and (c) Interest earned in respect of the temporary inter- corporate deposits kept by the assessee company with other companies, out of the proceeds of the public issue of shares. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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