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Income Tax Appellate Tribunal, DELHI BENCH “SMC-I”: NEW DELHI
Before: SHRI P.K.BANSAL
O R D E R This appeal is filed against the order of the Ld. CIT(A) dated 15.9.2015. The only issue involved in this appeal filed by the assessee relates to the claim of the deduction by the assessee u/s 80IC on the interest income amounting to Rs. 1,25,996/- which has been earned on the term deposit of Rs. 15 lacs given to Purvanchal Vidyut Vitaran Nigam Limited as a security deposit for a tender.
After hearing the rival submissions and going through the order of the tax authorities below I noted that this issue is no more res-integra in view of the decision of the Hon’ble Supreme Court in the case of Pandian Chemicals Ltd. v. Commissioner of Income-tax [2003] 262 ITR 278 (SC) in which also the assesse has earned the interest income on the security deposit made with the electricity board in which the Hon’ble Supreme Court took the view the interest income on such deposit cannot be said to have been derived from the business of the industrial undertaking. Respectfully following the said decision I confirm the order of the Ld. CIT(A).
In the result the appeal filed by the assesee stands dismissed.
Order pronounced in the open court on 12/07/2016.