Friday, 18 May 2018

Dismisses assessee’s SLP ; FD-interest assessable as business income ineligible for Sec 80IC deduction

SC dismisses assessee’s SLP against Uttarakhand HC decison denying Sec.80-IC deduction on interest earned on fixed deposit with bank for AY 2009-10 as it is not 'dervied from' eligible business; HC had observed that the Legislature has chosen to employ the word ‘derived’ in sec.80-IC as distinguished from ‘attributable to’; HC remarked that “Had the Legislature used the words “attributable to”, then it would have a much wider effect and it may have encompassed within itself, the income, which is the subject matter of controversy before us.” ; HC further affirmed AO’s order holding that interest income qualifies as business income u/s. 28 but no deduction can be allowed u/s 80-IC:SC 

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