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| The Tax Publishers2020 TaxPub(DT) 1723 (Ahd-Trib) : (2020) 184 ITD 0777 INCOME TAX ACT, 1961
Section 10AA
Interest was earned on placing fixed deposits which were wholly made for availing of letter of credit facilities, became part of business profits and was eligible for benefit of section 10AA.
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Deduction under section 10AA - Allowability - Interest earned on fixed deposits wholly made for availing of letter of credit facilities -
Assessee claimed deduction under section 10AA. AO re-computed amount deductible after excluding interest earned on fixed deposits from eligible profits. Held: In the light of factual position that interest was earned on placing fixed deposits which were wholly made for availing of letter of credit facilities, the same became part of business profits and was eligible for benefit of section 10AA.
Followed:Sadbhav Engineering Ltd. v. Dy. CIT ITA No. 610/Ahd/2008, 1834 & 2054 (Ahd) of 2009, 1835 & 2055 (Ahd) of 2009 and 2053 (Ahd) of 2009 : 2014 TaxPub(DT) 1472 (Ahd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 & 2013-14
INCOME TAX ACT, 1961
Section 14A Section 115JB
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