Court dismisses appeal, citing precedent in favor of assessee on interest income and turnover deduction.

The appeal was dismissed by the court based on previous decisions favoring the assessee. The court noted that the issue of reducing 10% of interest income from business profit had been decided in favor of the assessee by the Supreme Court in a prior case. Additionally, the court referenced a High Court judgment ruling against the revenue regarding the exclusion of Central Sales Tax and Sales Tax from the total turnover of the assessee for computing deduction under section 80 HHC. The court cited Supreme Court decisions supporting the assessee's position, leading to the dismissal of the appeal.

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Issues:
1. Whether to reduce 10% of the interest income from the profit of business.
2. Whether to exclude Central Sales Tax and Sales Tax from the total turnover of the assessee while computing deduction u/s 80 HHC.

Analysis:
1. The Department filed an appeal against the ITAT's order regarding the reduction of 10% of the interest income from the business profit. The court noted that the same issue was decided in favor of the assessee by the Supreme Court in a previous case. Therefore, the appeal was dismissed based on the Supreme Court's decision in Civil Appeal No. 5315 of 2007, where a similar question was resolved in favor of the assessee.

2. The second issue involved whether Central Sales Tax and Sales Tax should be excluded from the total turnover of the assessee for computing deduction u/s 80 HHC. During the motion hearing, it was acknowledged that a judgment of the High Court in a previous case had already ruled against the revenue on this matter. Subsequently, the court mentioned that the Supreme Court had also decided the same question in favor of the assessee in a different case. Therefore, considering the decisions of both the High Court and the Supreme Court, the appeal was dismissed in light of the judgments favoring the assessee.

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