M/S Parkash Indus. Ltd vs C I T And Anr
2023 Latest Caselaw 1186 P&H

      IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                     CHANDIGARH

220                                          ITA-405-2007 (O&M)
                                             Date of decision:- 19.01.2023

M/s Parkash Indus. Ltd.
                                                            .... Appellant

                                        Vs

Commissioner of Income Tax, Hisar and another
                                                               ...Respondents

CORAM: HON'BLE MS. JUSTICE RITU BAHRI
      HON'BLE MRS. JUSTICE MANISHA BATRA

Present: Mr. Anand Chhiber, Senior Advocate with
         Ms. Khyati Avnish, Advocate for the appellant.

          Ms. Gauri Neo Rampal, Senior standing
          counsel for the respondents.

                               ***
Ritu Bahri, J. (Oral)

Learned counsel for the respondents has referred to the

judgment of Hon'ble the Supreme Court, Conventional Fastners Vs.

Commissioner of Income Tax, Dehradun, ITA No.24 of 2015, decided

on 15.11.2017, wherein it is held that the benefit of deductions under

Section 80-IC of the Income Tax Act cannot be given on the interest

income earned from FD kept as security as this income is not part of

business of manufacturing.

Learned counsel for the appellant does not dispute the above

said judgment.

No interference is required in the order dated 16.01.2007

passed by the Income Tax Appellate Tribunal, Delhi Bench 'I' New

Delhi, wherein it has been held that derivation of interest or profit on

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ITA-405-2007 (O&M) -2-

deposits cannot be said to be flowing directly from industrial

undertaking, therefore, the deduction under Section 80HH could not be

allowed. As per Hon'ble the Supreme Court's judgment in the case of

Pandian Chemicals Ltd. Vs. CIT (262 ITR 278) (S.C.) wherein the

assessee had derived interest or profits on deposits with the electricity

Board. It was held by the Hon'ble the Supreme Court that the same

cannot be said to be flowing directly from the industrial undertaking,

therefore, deduction under Section 80 HH could not be allowed.

In view of the above, present appeal is hereby dismissed.

( RITU BAHRI ) JUDGE

( MANISHA BATRA ) JUDGE 19.01.2023 pooja saini

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

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