Court held that the assessee is entitle deduction in respect of interest on deposits, compensation received on machinery breakdown and miscellaneous income-Interest earned on short-term deposits of money kept apart for purpose of business has to be treated as income earned on business and cannot be treated as income from other sources and is deduction .
Chambal Fertilizers & Chemicals Ltd v. CIT (2018) 95 taxmann.com 313 ( Raj) (HC) Editorial: SLP of revenue is dismissed ,CIT v. Chambal Fertilizers & Chemicals Ltd. (2018) 257 Taxman 93 (SC)
S. 80IA :Industrial undertakings – Derived – Interest- compensation- miscellaneous income- Interest earned on short term deposits – Entitle deduction in respect of interest on deposits, compensation received on machinery breakdown and miscellaneous income-Interest earned on short-term deposits of money kept apart for purpose of business has to be treated as income earned on business and cannot be treated as income from other sources and is deduction [ S.28((i), 56 ]