GST Dues of Deceased Not Recoverable from Legal Heir Without Evidence of Business Continuation: Jharkhand HC

The Income Tax Appellate Tribunal (ITAT) determined that interest earned on fixed deposits (FDs) does not qualify as business income for a unit operating within a Special Economic Zone (SEZ). Consequently, the tribunal upheld the denial of the deduction claimed under Section 10AA of the Income Tax Act, which offers tax benefits on profits and gains derived from eligible business activities carried out by units in SEZs. The ITAT reasoned that income generated from investments such as FDs is separate from the core operational activities of the SEZ unit and cannot be considered as profits directly derived from such business. This decision reinforces the distinction between income from investments and income from business operations for the purpose of claiming SEZ-related tax benefits.