https://www.taxtmi.com/caselaws?id=152521 The court upheld the decision of the ITAT, allowing the benefit of netting of interest to the assessee under section 80HHC of the Income-tax Act. It emphasized the requirement of establishing a direct nexus between interest earned on fixed deposits and the export business to qualify as business income. The interest earned from fixed deposit receipts, utilized as bank guarantees for export quotas, was deemed to be linked to the export activities. Therefore, the court dismissed the appeal, ruling in favor of the assessee and affirming the principle of netting interest in line with the nexus to business activities. en-us Fri, 06 Aug 2010 00:00:00 +0530 Mon, 29 Sep 2014 14:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152521 The court upheld the decision of the ITAT, allowing the benefit of netting of interest to the assessee under section 80HHC of the Income-tax Act. It emphasized the requirement of establishing a direct nexus between interest earned on fixed deposits and the export business to qualify as business income. The interest earned from fixed deposit receipts, utilized as bank guarantees for export quotas, was deemed to be linked to the export activities. Therefore, the court dismissed the appeal, ruling in favor of the assessee and affirming the principle of netting interest in line with the nexus to business activities. Case-Laws Income Tax Fri, 06 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152521