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TMI Blog2019 (3) TMI 1861X X X X Extracts X X X X X X X X Extracts X X X X ..... at the interest income earned had a nexus with the borrowing raised from the bank which was, in turn, utilised for carrying on the eligible business. Similarly, on the issue of interest earned on the security deposit placed for obtaining electricity connection is concerned, the same was also held eligible for the benefits of Sec. 10A of the Act following the decision of the Tribunal in the case of M/s. Dania Oro Jewellery Pvt. Ltd. [ 2018 (1) TMI 240 - ITAT MUMBAI ] Thus claim of assessee for inclusion of interest income for the purposes of Sec. 10A of the Act is accepted. Assessing Officer is directed to compute deduction under Section 10A of the Act by considering the aforesaid interest income. Appeal of the assessee is allowed, - SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business of manufacture and export of studded jewellery in its manufacturing unit located at Special Economic Zone and is otherwise eligible for claim of deduction under Section 10A of the Act. 4. The Learned Representative for the assessee pointed out that identical dispute was considered by the Tribunal in assessee s own case for Assessment Year 2009-10 vide order in ITA No. 4206/Mum/2014 dated 13.04.2018. In the said decision, the relevant discussion reads as under :- 15. Now, we take-up the cross-appeal preferred by the assessee for Assessment Year 2009-10, wherein the following Grounds have been raised:- 1. On the facts and circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) ought to have directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese elements of interest income amounting to ₹ 4,48,942/- have been held ineligible for the benefits of Sec. 10A of the Act and the reasoning given by the Assessing Officer as well as the CIT(A) is that such income is not derived from Sec. 10A eligible undertaking s business. 17. Before us, the learned representative for the assessee emphasised that both the interest incomes are inextricably connected to the business of the undertaking and, therefore, the same are eligible for the benefits of Sec. 10A of the Act. It has also been pointed out that the profits of the business of the undertaking would include even the incidental incomes which are derived from carrying out the business of the undertaking and the instant interest incomes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ewellery Pvt. Ltd. vs ITO, ITA No. 7635/Mum/2014 dated 03.01.2018 held such interest income to be eligible for the benefits of Sec. 10A of the Act. Following the aforesaid decisions which are directly on the point, we approve the stand of the assessee for including the interest income of ₹ 4,48,942/- in order to determine the profits of business for the calculation of deduction u/s 10A of the Act. 5. The Tribunal in Assessment Year 2009-10 by following the judgment of the Hon'ble Karnataka High Court in the case of M/s. Hewlett Packard Global Soft Ltd., ITA No. 812/2007 dated 30.10.2017 held that the interest income earned on funds placed in the bank was entitled to benefits of Sec. 10A of the Act. The Tribunal further noticed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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