https://www.taxtmi.com/caselaws?id=117683 The ITAT Chennai ruled that interest received on fixed deposits cannot be set off against interest paid on borrowed amounts for computing eligible profit under section 80HHC. The Tribunal emphasized the need for a clear nexus between interest paid and interest received, following legal precedents such as the Lalsons Enterprises case and the K.S. Subbiah Pillai & Co. (India) case. It was decided that 90% of the net interest, after allowing a set-off with a nexus, should be excluded from business profit. The decision upheld the lower authorities' ruling, dismissing the appeals filed by the assessee for the assessment years 1995-96 and 1996-97. en-us Fri, 28 Jan 2005 00:00:00 +0530 Mon, 25 Jun 2012 18:00:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117683 The ITAT Chennai ruled that interest received on fixed deposits cannot be set off against interest paid on borrowed amounts for computing eligible profit under section 80HHC. The Tribunal emphasized the need for a clear nexus between interest paid and interest received, following legal precedents such as the Lalsons Enterprises case and the K.S. Subbiah Pillai & Co. (India) case. It was decided that 90% of the net interest, after allowing a set-off with a nexus, should be excluded from business profit. The decision upheld the lower authorities' ruling, dismissing the appeals filed by the assessee for the assessment years 1995-96 and 1996-97. Case-Laws Income Tax Fri, 28 Jan 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117683