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IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 724/2007 . SUHIR ENGINEERING CO ..... Appellant Through : Mr. K.R. Manjani, Advocate. . versus . ASSTT. COMMISSIONR OF INCOME TAX ..... Respondent Through : Ms. P.L. Bansal, Advocate. CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE DR. JUSTICE S.MURALIDHAR . O R D E R 09.08.2007 The Assessee is aggrieved by an order dated 25th January, 2007 passed by the Income Tax Appellate Tribunal, Delhi Bench 'D' in ITA No. 5460/DEL./04 for the assessment year 1999-2000. The grievance of the Petitioner is two-fold. It is firstly submitted that re-opening the assessment of the Petitioner on the basis of an audit objection is not sustainable and secondly, it is contended that the interest . ITA 724/2007 Page 1 of 4 . . income earned by the Petitioner on deposits of Vikas Cash Certificates deposited for obtaining loans amounts to business income and therefore, the Petitioner is entitled to a deduction thereon. In so far as the first contention is concerned, we find that an objection was raised to the effect that Petitioner was not entitled to the benefit of deduction on the interest income on the Vikas Cash Certificates and that had been wrongly allowed by the Assessing Officer. The Income Tax Appellate Tribunal considered this aspect of the matter and came to the conclusion that it is not a case of a change of opinion. The return of the assessee was processed under Section 143 (1)(a) of the Income Tax Act, 1961 in a summary manner and there was no serious application of mind to the facts of the case. It would have been a different matter if a regular assessment was made in terms of sub-Section (3) of Section 143 of the Act but that was not so. We find no error in this conclusion. With regard to the second contention concerning deduction allowable ITA 724/2007 Page 2 of 4 on the interest income, the submission of learned counsel for the Petitioner is that for the purposes of obtaining loans from the bank it was necessary for the Petitioner to make some deposits and such deposits were made through Vikas Cash Certificates. Therefore, it is submitted that the deposits were in relation to the business of the Assessee, the interest income derived from the Vikas Cash Certificates would amount to business income. The Supreme Court has considered the expression 'derived from' as used in Section 80HHC and Section 80-IA of the Income Tax Act, 1961 in Commissioner of Income Tax vs. Sterling Foods, [1999] 237 ITR 579 and Pandian Chemicals Ltd. vs. Commissioner of Income Tax, [2003] 262 ITR 278. It has been held that there is a difference between the expression 'derived from' and the expression 'attributable to'. The Tribunal was of the view, after considering these two decisions that the expression 'derived from' has a narrower connotation and there must be a direct nexus between the interest earned and the business of the Assessee. The purchase . . ITA 724/2007 Page 3 of 4 of Vikas Cash Certificates for the purposes of obtaining loans from the bank did not show a direct nexus with the business of the Assessee. Consequently, the interest earned was not 'derived from' the business of the Assessee. We are of the view that no fault can be found with the reasons given by the Tribunal. In our opinion, no substantial question of law arises. Dismissed. . . MADAN B. LOKUR, J . . AUGUST 09, 2007 S.MURALIDHAR, J sk . . . . . . . ITA 724/2007 Page 4 of 4 . . .