TaxTMI 
TaxTMI 
2014 (12) TMI 171
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....ht in law and on facts in deleting the disallowance of discount of Rs. 29,02,192/- and transport income of Rs. 6,22,409/- made by AO for the purpose of calculation of deduction under Sections 80I & 80HH of the IT Act and confirmed by CIT(A) while relying upon its own decisions which have not reached finality and without considering the fact that such expenses incurred from the business income only and not for earning income liable to be excluded? 2. Whether the Appellate Tribunal is right in law and on facts in restoring the issue back to AO to decide for granting benefits of the netting aspect and further directing the AO to allow expenses after verifying nexus between interest ....
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....evant to assessment year 1997-98, the assessee received additional income of Rs. 29.02 lacs towards discount of the sales of raw materials which the assessee purchased. The assessee, therefore, claimed such amount as part of deduction under section 80IA/80HH of the Act. The Tribunal ultimately upheld the assessee's contention. We see no reason to take a different view. If on the basis of the discounts given by the sellers, the total profit of the assessee from the activity which was otherwise eligible for deduction 80I/80HH of the Act was to that extent increased, there is no reason why such larger sum should qualify for deduction. Coming to the question of transport income, counsel for the assessee conceded that the same would not qualify ....
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....the Act. Ninety per cent of not the gross rent or gross interest, but the net thereof shall have be excluded. It was observed as under: "If we now apply Explanation (baa) as interpreted by us in this judgment to the facts of the case before us, if the rent or interest is a receipt chargeable as profits and gains of business and chargeable to tax under section 28 of the Act, and if any quantum of the rent or interest of the assessee is allowable as as expense in accordance with sections 30 to 44D of the Act and is not to be included in the profits of the business of the assessee as computed under the head "Profits and gains of business or profession", ninety per cent o....
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....al No.447 of 2013 where at the instance of the assessee, similar question was not considered. On the other hand, learned counsel Shri Soparkar for the assessee, in addition to relying on the decision in the case of ACT Associated Capsules Pvt. Ltd. (supra), also placed heavy reliance on an order dated 30.11.2013 in Tax Appeal No.213 of 2006 in the case of Rajoo Engineers Ltd. in which the Revenue's appeal raising such a question came to be dismissed relying on the decision in the case of ACG Associated Capsules Pvt. Ltd. (supra). The counsel also relied on a decision of the Delhi High Court in the case of Essel Shyam Communication Ltd. v. Commissioner of Income tax, (2012) 28 taxmann.com 243 (Delhi), in which in detailed consideration, rel....