9911796707
TMI Blog2016 (7) TMI 1550X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal is preferred by the Revenue against the order of the ld. Commissioner of Income Tax-(Appeals)-1, Kolkata dated 10.07.2014 for the assessment year 2006-07 on the following grounds: - "(1) On the facts and circumstances of the case, the ld. CIT(A) has erred in al lowing deduct ion of Rs. 29,62,628/- u/s 80IB of the I.T. Act, 1961 on interest earned from fixed deposits, which is norm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction under section 80IB in respect of interest earned from Fixed Deposits kept with Bank as margin money is squarely covered in favour of the assessee by the decision of the Hon'ble Calcutta High Court in assessee's own case for A.Y. 2003-04 rendered vide its order dated 21.07.2014 in ITA No. 99 of 2007, wherein a similar claim of the assessee for deduction under section 80IB in respect of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements. It was, therefore, possible to say that the income was not or did not have any direct nexus with the acivity of the assessee. Similarly, in the case of Liberty India (supra) the income in quest ion was the amount of drawback incentives received by the assessee which did not have any direct nexus with the export made by the assessee. But, in the present case it is difficult to say that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest for Rs. 110/- and receiving interest on the amount of Rs. 10/-, it can only be said that he is really paying interest for Rs. I00/- which he originally needed for the business. The income arising out of the deposit made by him is, therefore, his business income". As the issue involved in the year under consideration as well as al l the material facts relevant thereto are similar to A.Y. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome reasonable basis and as agreed by the ld. representatives of both the sides, this Tribunal has taken a consistent view that the disallowance under section 14A to the extent of 1% of the exempt dividend income is fair and reasonable. We, therefore, find no infirmity in the impugned order of the ld. CIT(Appeals) restricting the disallowance of Rs. 5,00,000/- made by the Assessing Officer under s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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