Comments on: Interest income from Fixed deposits not eligible for deduction u/s 10A/10B http://taxguru.in/income-tax-case-laws/interest-income-from-fixed-deposits-not-eligible-for-deduction-us-10a10b.html Complete Tax Solution Fri, 10 Feb 2012 11:17:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: SANDEEP http://taxguru.in/income-tax-case-laws/interest-income-from-fixed-deposits-not-eligible-for-deduction-us-10a10b.html/comment-page-1/#comment-432174 SANDEEP Tue, 30 Aug 2011 14:30:08 +0000 http://www.taxguru.in/?p=17673#comment-432174 My Client is running a manufacturing unit in j&K AND claming Deduction 80IB During the course of BUSSINES the assess has earned interest of Rs 34.11 lacs on bank FDRS AND Rs 23.20 lacs interest now AS per assessment order interest income has not been risen from manufacturing activity and thus was not eligible for deduction under section 80IB HOW INTEREST RS 34.11 IS RECEIVED As the assess is importing raw material for various countries .The payment is made through letter of credit for whic Bank gurentee is required so fdrs were taken so that margin of 25% is given out of them this how rs 34.11 interest is earned how interest Rs 23.20 is RECEIVED AS PER TERM & AGREEMENT SUPPLIES TO DEBTOR ARE RECIVIBLE IN 180 DAYS BUT PAYMENT IS RECEIVED IN 300 DAYS OVER DUE CHARGES ARE RECEIVED FOR SUPPLIER PLEASE LET ME NO WHETHER IT IS ALLOWED U/S80IB OR NIT My Client is running a manufacturing unit in j&K AND claming Deduction 80IB During the course of BUSSINES the assess has earned interest of Rs 34.11 lacs on bank FDRS AND Rs 23.20 lacs interest now AS per assessment order interest income has not been risen from manufacturing activity and thus was not eligible for deduction under section 80IB

HOW INTEREST RS 34.11 IS RECEIVED

As the assess is importing raw material for various countries .The payment is made through letter of credit for whic Bank gurentee is required so fdrs were taken so that margin of 25% is given out of them this how rs 34.11 interest is earned

how interest Rs 23.20 is RECEIVED

AS PER TERM & AGREEMENT SUPPLIES TO DEBTOR ARE RECIVIBLE IN 180 DAYS BUT PAYMENT IS RECEIVED IN 300 DAYS OVER DUE CHARGES ARE RECEIVED FOR SUPPLIER

PLEASE LET ME NO WHETHER IT IS ALLOWED U/S80IB OR NIT

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