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TMI Blog2023 (5) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the appeal is accordingly allowed. Disallowance of expenditure u/s 37 and 40(a)(ia) - submission on assessee that insofar as the property tax is concerned, the assessee is filing the property tax receipts for the relevant assessment year and submitted now, whereas the proof of remittance of TDS by way of challan - HELD THAT:- We admit the additional evidence in the shape of property tax receipts. In view of the fact that the relevant material is now available on record in respect of the property tax and also the TDS, it would be just and proper, AO to verify the same and take a view. With this view of the matter, restore the issue relating to disallowance under section 37 and 40(a)(ia) to the file of the learned AO to verify the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the only business of the assessee is generation and sale of power. And during the financial year relevant for the assessment year 2017-18, assessee placed certain surplus amounts in FDRs which yielded interest income of Rs. 2,07,044/-. 5. According to the learned Assessing Officer, this interest on FDRs is not in the nature of profit and gain from business and it has to be assessed to tax as income from other sources. 6. Learned CIT(A) recorded that the assessee did not adduce any material to invite the interference with the order of the learned Assessing Officer and, therefore, dismissed the ground relating to this issue. 7. Learned AR placed reliance on the decision in the case of M/s. Tema Exchangers Manufactures Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, section 80-IB of the Act requires that the profits and gains should be derived from any business of the industrial undertaking. Further on noticing the decision in the case of Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278, Hon'ble court observed that the expression derived from industrial undertaking is a subject removed from the business of the industrial undertaking . By observing so, the Hon'ble Bombay High Court upheld the findings of the ITAT that the interest income earned was in the nature of business income and could be considered as part of business profit for the purpose of granting deduction under section 80-IA of the Act. 9. While following the view taken in CIT vs. Jagdishprasad M. Joshi (supra), the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80-IA of the Act. Ground No. 3 of the appeal is accordingly allowed. 12. Grounds No. 5 and 6 relate to disallowance of expenditure under section 37 and 40(a)(ia) of the Act. It is the submission on behalf of the assessee that insofar as the property tax is concerned, the assessee is filing the property tax receipts for the relevant assessment year and submitted now, whereas the proof of remittance of TDS by way of challan has already been submitted by the assessee before the learned CIT(A). Impugned order shows that the same are not considered by the learned CIT(A). 13. In these circumstances, I admit the additional evidence in the shape of property tax receipts. In view of the fact that the relevant material is now available o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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