M/S. Paramount Pharma, New Delhi vs. ITO, New Delhi
In the result, appeal of the assessee is allowed for statistical purpose
ITA 3711/DEL/2014[2010-11]Status: DisposedITAT Delhi13 Apr 2017AY 2010-11
Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2010-11 Vs. Income Tax Officer, Ward-25(4), M/S. Paramount Pharma, 10/351, Sunder Vihar, Paschim New Delhi Vihar, New Delhi Pan :Aaifp8207F (Appellant) (Respondent) Appellant By Sh. Mukesh Kohli, Fca Respondent By Sh. F.R. Meena, Sr.Dr Date Of Hearing 23.03.2017 Date Of Pronouncement 13.04.2017 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 22/04/2014 Of Learned Commissioner Of Income-Tax( Appeals)-Xxiv, New Delhi (In Short ‘The Cit-A’) For Assessment Year 2010-11 Raising Following Grounds: “1. That The Assessee Has Earned Interest Income On Fdrs & These Fdrs Are Required As Margin For Getting Foreign Letter Of Credit. Letter Of Credit Is Required For Procuring Raw Material From Foreign Suppliers. Hence There Is Direct Nexus Between The Income Earned & The Industrial Undertaking. 2. That The Assessee Was Under The Bona Fide Belief That Interest On F.D.R Was Also Eligible For Deduction U/S 801B. 3. That The Ld. Assessing Officer Had Not Considered The Tds On Interest On Fdr & Drafted The Notice Of Demand Accordingly. 4. That There Need Not Necessary Be Direct Nexus Between The Activity Of The Undertaking & Profit & Gains Assertion 80Ic Of The Income Tax Act Requires That The Profit & Should Be Derived
Section 801BSection 80I
…profit and gains assertion 80IC of the Income Tax Act requires that the profit and should be derived 2 from any business of the undertaking. We rely upon the following court judgments: • CIT V Koshika Telecom Ltd 287 ITR 479 (DELHI) • CIT V Eastern Tar P Ltd 301 ITR 427(JHARKHAND) • DCIT V Sudhir Genset Ltd 17 DTR 496 (DELHI) 5. That the assessee craves leave to add/alter any of the grounds of appeal before or at the time of hearing.” 2. The facts in brief of the case are that that the assessee, a partnership firm, was engaged in business of manufacturing basic drugs at Khatua (Jammu and Kashmir) during relevant…
