Dismissing the appeal of the assessee the Court held that; interest earned on fixed deposit maintained with bank for obtaining bank guarantee is not derived from business hence not entitle to deduction. Court also observed that there is material difference between the language used in S.80HH 80IB and S.80IC(2) of the Act . Accordingly revision was held to be justified . ( AY.2009-10)
Conventional Fastners v. CIT (2018) 403 ITR 115/ 301 CTR 625/164 DTR 65 (Uttarakhand) (HC)Editorial: SLP of assessee is dismissed, Conventional Fastners v. CIT ( 2018) 256 Taxman 61 (SC) Editorial: SLP of assessee is dismissed Conventional Fastners v. CIT ( 2018) 256 Taxman 61 (SC)
S. 80IC : Special category States -Interest earned on fixed deposit maintained with bank for obtaining bank guarantee is not derived from business hence not entitle to deduction . [ S.2(13),80HH, 263 ]