Recovery of excess cash over and above the agreed business consideration pursuant to survey cannot be considered as a receipt “derived from” Industrial Undertaking for deduction under s 80-IB — as held by IndoreTrib in Maa Vaishno Devi v DCIT — In favour of: The revenue.
The word “derived from” cannot have a wide import so as to include any income which is not generated from the eligible business and is not directly connected with such eligible business of the assessee.
Interest income received from the lending of funds by the assessee engaged in the business of ginning and pressing of cotton is not entitled to deduction under s 80-IB.
The income which has been acquired out of income from undisclosed sources cannot be allowed as deduction under s 80-IB.
Decided on: 25 September 2011.
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