IN THE HIGH COURT OF DELHI AT NEW DELHI 
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                       ITA 724/2007  
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 SUHIR ENGINEERING CO                                      ..... Appellant 
 Through :       Mr. K.R. Manjani, Advocate. 
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 versus 
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 ASSTT. COMMISSIONR OF INCOME TAX            ..... Respondent 
 Through :        Ms. P.L. Bansal, Advocate. 
 CORAM: 
 HON'BLE MR. JUSTICE MADAN B. LOKUR 
 HON'BLE DR. JUSTICE S.MURALIDHAR 
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 O R D E R 
                                   09.08.2007 
 The Assessee is aggrieved by an order dated 25th January, 2007 passed by 
 the Income Tax Appellate Tribunal, Delhi Bench 'D' in ITA No. 5460/DEL./04 for 
 the assessment year 1999-2000. 
 The grievance of the Petitioner is two-fold.  It is firstly submitted 
 that re-opening the assessment of the Petitioner on the basis of an audit 
 objection is not sustainable and secondly,  it  is  contended  that  the 
 interest 
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 ITA 724/2007                                                        Page 1 of 4 
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 income earned by the Petitioner on deposits of Vikas Cash Certificates deposited 
 for obtaining loans amounts to business income and therefore, the Petitioner is 
 entitled to a deduction thereon. 
 In so far as the first contention is concerned, we find that an objection 
 was raised to the effect that Petitioner was not entitled to the benefit of 
 deduction on the interest income on the Vikas Cash Certificates and that had 
 been wrongly allowed by the Assessing Officer. 
 The Income Tax Appellate Tribunal considered this aspect of the matter 
 and came to the conclusion that it is not a case of a change of opinion.  The 
 return of the assessee was processed under Section 143 (1)(a) of the Income Tax 
 Act, 1961 in a summary manner and there was no serious application of mind to 
 the facts of the case.  It would have been a different matter if a regular 
 assessment was made in terms of sub-Section (3) of Section 143 of the Act but 
 that was not so.  We find no error in this conclusion. 
 With regard to the second contention concerning deduction allowable 
 ITA 724/2007                                                        Page 2 of 4 
 on the interest income, the submission of learned counsel for the Petitioner is 
 that for the purposes of obtaining loans from the bank it was necessary for the 
 Petitioner to make some deposits and such deposits were made through Vikas Cash 
 Certificates.  Therefore, it is submitted that the deposits were in relation to 
 the business of the Assessee, the interest income derived from the Vikas Cash 
 Certificates would amount to business income. 
 The Supreme Court has considered the expression 'derived from' as used in 
 Section 80HHC and Section 80-IA of the Income Tax Act, 1961 in Commissioner of 
 Income Tax  vs.  Sterling Foods, [1999] 237 ITR 579 and Pandian Chemicals Ltd. 
 vs.  Commissioner of  Income Tax, [2003] 262 ITR 278.  It has been held that 
 there is a difference between the expression 'derived from' and the expression 
 'attributable to'.  The Tribunal was of the view, after considering these two 
 decisions that the expression 'derived from' has a narrower connotation and 
 there must be a direct nexus between  the interest earned and the business of 
 the Assessee.  The purchase 
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 ITA 724/2007                                                        Page 3 of 4 
 of Vikas Cash Certificates for the purposes of obtaining loans from the bank did 
 not show a direct nexus with the business of the Assessee.  Consequently, the 
 interest earned was not 'derived from' the business of the Assessee. 
 We are of the view that no fault can be found with the reasons given by 
 the Tribunal. 
 In our opinion, no substantial question of law arises. 
 Dismissed. 
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 MADAN B. LOKUR, J 
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 AUGUST 09, 2007                            S.MURALIDHAR, J 
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 ITA 724/2007                                                        Page 4 of 4 
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