Deduction On Income Admissible Under Section 80Ib Is On v. Southindia Produce Company, Reported In 262 Itr 20 And That Of

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.N.RAMACHANDRAN NAIR & THE HON'BLE MR. JUSTICE BABU MATHEW P.JOSEPH THURSDAY, THE 23RD DAY OF FEBRUARY 2012/4TH PHALGUNA 1933 ITA.No. 46 of 2011 ( ) ----------------------AGAINST ORDER IN ITA.239/2009 DATED 19/01/2011 of I.T.A.TRIBUNAL,COCHINBENCH APPELLANT(S)/RESPONDENT: ----------------------- M/S.PRINCE ROLLINGS (P) LTD., ANAPPURAMKADU, KINASSERY P.O., PALAKKAD. BY ADVS.SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SMT.NIVEDITA A.KAMATH RESPONDENT(S)/APPELLANT IN ITA: ------------------------------- THE ASSISTANT COMMISSIONER OF INCOMETAX, CIRCLE-1, PALAKKAD, PIN - 678 001. BY SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 23-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ITA NO.46/2011 APPENDIX APPELLANT'S EXHIBITS ANNEXURE-A :COPY OF ORDER OF THE ADDL.COMMISSIONER OF INCOMETAX, PALAKKAD DATED 31/03/2008 FOR THE YEAR 2005-06 ISSUED TO THEAPPELLANT. ANNEXURE-B :COPY OF ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS), KOCHI FOR THE YEAR 2005-06 DATED 06/01/2009 ISSUED TOTHE APPELLANT. ANNEXURE-C :COPY OF ORDER OF THE INCOME TAX APPELLATETRIBUNAL, COCHIN BENCH DATED 19/01/2011 ISSUED TO THE APPELLANT. // TRUE COPY // jg PA TO JUDGE. C.N.RAMACHANDRAN NAIR & BABU MATHEW P. JOSEPH, JJ. .................................................................... I.T.A.No.46 of 2011 .................................................................... Dated this the 23[rd] day of February, 2012. J U D G M E N T Ramachandran Nair, J. The only question raised is whether the Tribunal was justified in holding that the assessee is not entitled todeduction under Section 80IB on interest income received onshort term deposits. 2. We have heard Adv. Shri.Anil D. Nair appearing for the assessee and learned Standing Counsel for therespondent. Deduction on income admissible under Section 80IB is on the business income earned by the industrial unit in thebackward area. Interest earned on short term deposit isincome from other sources, and so much so, it cannot betreated as a “business income” of the industry for the purposeof granting deduction is the finding in large number ofdecisions including the decision of this Court in ACIT v. SouthIndia Produce Company, reported in 262 ITR 20 and that of W.A.No.46/2011 2 the Supreme Court in Pandian Chemicals Ltd. v. CIT, report e in 262 ITR 278. Following these decisions, we dismissthe I.T.Appeal filed by the assessee. (C.N.RAMACHANDRAN NAIR, JUDGE) (BABU MATHEW P. JOSEPH, JUDGE) jg