TaxTMI 
TaxTMI 
2002 (3) TMI 595
X X X X Extracts X X X X
X X X X Extracts X X X X
....e revenue is directed against the order dated 7-1-1994 of the CIT(A) VIII Bombay pertaining to the assessment year 1990-91. 2. The revenue has taken the following two substantive grounds - On the facts and in the circumstances of the case and in law, the learned CIT(A): 1.erred in holding that interest and dividend income are includible in profits of eligible business for computation of deducti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....om the eligible profit for the purpose of deduction under section 32AB, it was submitted before the AO that these were business income and not income from other sources. Rejecting the assessee's contention the AO reduced 20 per cent thereof amounting to Rs. 3,38,275 from the assessee's claim thereby restricting the assessee's claim to Rs. 13,87,423 only. 5. On appeal, it was contended that the in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he published accounts and the AO was bound by the said provisions. The AO travelled beyond the provisions in restricting the assessee's claim. Reliance was placed on the decision in M/s. Apollo Tyres 45 TTJ 535. Accepting the above contentions of the assessee the CIT(A) directed the AO to allow the deduction under section 32AB as claimed without exclusion of interest and dividend income from the b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sidered the rival submissions. A look to the provisions of sub-section (3) of section 32AB would go to reveal that it provides that the profits of the business for the purposes of allowing deduction shall be the profits computed in accordance with the requirements of Parts II & III Schedule VI of the Companies Act, 1956 and increased or reduced by certain specified amounts. Thus, so long as the pr....