2013 (1) TMI 593

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....2005 has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 11.6.2004, Annexure A.4 passed by the Income Tax Appellate Tribunal, Delhi Bench 'G', Delhi passed in Miscellaneous Application No.58(Del) 2003 in ITA No.4151(Del) 1997 for the assessment year 1993- 94, claiming following substantial question of law:- "Whether on facts and in the circumstances of the case, the Hon'ble ITAT was correct in law in rectifying its earlier order under section 254(2) of the I.T.Act to allow netting of interest against express provisions of Explanation (baa) to Section 80HHC of the Act? 3. Briefly, the facts as narrated in ITA No.479 of 2005 may be noticed. The assessee is a limi....

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....ue preferred an appeal before the Tribunal. Vide order dated 21.10.2002, Annexure A.3, the appeal was allowed. Aggrieved by the order, the assessee filed a Miscellaneous application before the Tribunal on 24.1.2003 against the order dated 21.10.2002 contending that while working out deduction under Section 80HHC of the Act, 90% of receipt by way of interest had to be excluded from profits of business taking net interest income and not the gross interest receipts. The Tribunal allowed the said application vide order dated 11.6.2004, Annexure A.4. Hence the present appeals by the revenue. 4. We have heard learned counsel for the parties and perused the record. 5. The issue involved herein is whether it is the net interest which has t....