1992 (7) TMI 116

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.... that the interest accrued on bank deposits was considered as business income and not as income from other sources and the deduction under s. 80HHC was allowed on that basis. Further, it is contended that in terms of provisions of s. 80 AB, the interest income on bank deposits which is to be assessed under other sources should be excluded from the income from business for purpose of s. 80 HHC. ....

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....assessee has come on appeal in ITA No. 147/Coch/88 against the non-consideration of the grievance of the assessee. Subsequent to the passing of the original appellate order, the CIT(A) has rectified his order under s. 154 holding that the fixed deposits had a nexus with the business of the assessee and the income emanating therefrom should be assessed as income under the head business and the Reve....

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....we hold that the interest accrued on the fixed deposits should be construed only as business income assessable under the head business and not under other sources. 5. The assessee is an exporter of choir products. It used to get cash assistance from the Government on its exports. Part of the cash assistance is converted into deposits under reinvestment plan scheme with the banks. These deposits....

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.... order of the CIT(A). 6. Even if it is held that the interest income is properly assessable under the head other sources still the provisions of 80 AB will not be attracted to the facts of the case for the asst. yr. 1983-84. Shri Srinivasan, the learned representative of the assessee is right in his alternative submission that s. 80HHC as it stood in the asst. yr. 1983-84 did not relate the ded....