9911796707
TMI Blog2007 (7) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... The Judgment of the Court was delivered by P. P. S. Janarthana Raja, J. - This appeal is filed under Section 260A of the Income Tax Act, 1961 by the assessee, against the order of the Income Tax Appellate Tribunal, Bench 'A', Chennai in I.T.A. No.2512/Mds/2005 dated 29.12.2006, raising the following substantial question of law:- "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the interest income derived by the appellant is not eligible for relief under Sec.10A of the Income-tax Act?" 2. The facts leading to the above substantial question of law are as under: 3. The assessee is a Private Limited Company established under the Madras Export Processing Zone and is engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissed the appeal filed by the assessee. Hence the present tax case by the assessee. 4. Learned counsel appearing for the assessee submitted that the income is attributable to funds derived from export business and the funds were retained in the bank to meet the exigencies of the business and that the entire transaction constitutes an integrated whole and the same could not be bifurcated into different areas. It is further submitted that Section 10A of the Act is a beneficial provision and has to be construed liberally and relied on the Supreme Court judgment in the case of Commissioner of Income-tax Vs. Baby Marines Exports [2007] 290 ITR 323 (SC). 5. Heard the counsel. In this case, the interest income was earned out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not the export income and that the said interest was rightly assessed under the head "income from other sources". The assessed also had not brought to our notice any contra judgment or any other valid materials or evidence, to take a different view, except relying on the Supreme Court judgment in the case of Commissioner of Income-tax Vs. Baby Marines Exports [2007] 290 ITR 323 (SC), wherein it was held that exemption and beneficial provisions should be construed liberally. There is no quarrel regarding the proposition and the earlier judgment of this Court cited supra, had interpreted Section 10A of the Act after hearing the arguments and held that there is no direct nexus between the interest and the Industrial Undertaking and hen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
