2013 (12) TMI 839

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.... JUDGMENT (Per : Honourable Mr. Justice M. R. Shah) 1. Being aggrieved and dissatisfied with the impugned judgment and order passed by the Income Tax Appellate Tribunal (hereinafter referred to as 'ITAT') dated 21/05/2010 in ITA No. 1347/AHD/2007 for the Assessment Year 2003-04, the assessee has preferred the present Tax Appeal for consideration of the following substantial question of law; ....

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....HHC in respect of the interest income in question. 3 On appeal before the ITAT by the revenue, by impugned judgment and order, ITAT has allowed the appeal preferred by the revenue and has held that the assessee cannot claim any deduction under Section 80HHC of the Income Tax Act in respect of interest income, which does not form part of the business income and, therefore, held that the CIT(A) w....

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....is submitted that in the aforesaid decision the Hon'ble Supreme Court has held that for the purpose of deduction under Section 80HHC of the Income Tax Act the net interest income is to be excluded. It is submitted that in the present case, the ITAT has taken a view that for the purpose of deduction under Section 80HHC of the Income Tax Act gross interest is to be excluded and, therefore, it is req....

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....sed is to be answered in favour of the assessee. In the case of ACG Associated Capsules PVT. LTD (Supra) it is held by Hon'ble the Supreme Court that for the purpose of deduction under Section 80HHC of the Income Tax Act net interest is to be excluded. In the present case, while passing the impugned judgment and order, the ITAT has held that for the purpose of claiming deduction under Section 80HH....