https://www.taxtmi.com/caselaws?id=445043 The ITAT Mumbai allowed the assessee's appeal regarding calculation of deduction under section 36(1)(viii). The tribunal held that interest on income tax refund should be excluded from both the numerator (business income) and denominator (total revenue from operations) when computing the deduction. The tribunal agreed with the assessee's argument that interest on income tax refund is not derived from business operations and therefore cannot form part of total revenue from operations. The tribunal set aside the lower authorities' findings and directed the AO to reduce interest on income tax refund from total revenue from operations before computing the deduction. en-us Tue, 05 Sep 2023 00:00:00 +0530 Sat, 28 Oct 2023 10:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445043 The ITAT Mumbai allowed the assessee's appeal regarding calculation of deduction under section 36(1)(viii). The tribunal held that interest on income tax refund should be excluded from both the numerator (business income) and denominator (total revenue from operations) when computing the deduction. The tribunal agreed with the assessee's argument that interest on income tax refund is not derived from business operations and therefore cannot form part of total revenue from operations. The tribunal set aside the lower authorities' findings and directed the AO to reduce interest on income tax refund from total revenue from operations before computing the deduction. Case-Laws Income Tax Tue, 05 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445043