2015 (1) TMI 434

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....e circumstances of the case the Tribunal is right in holding the interest derived from the deposit cannot be treated as income from business and hence the same is excluded for the purpose of calculating deduction u/s 80 HHC? 2) Whether on the facts and in the circumstances of the case the Tribunal is right in holding that the gross receipt interest income would be taken into account for the purpose of computing deduction u/s 80 HHC?" 2. The appellant/assessee is a 100% export oriented unit doing export business in cotton fabrics. For the assessment year 1994-1995, the assessee filed return of income on 31.10.94 and the same was processed under Section 143 (1) (a) of the Income Tax Act. It was noticed that the the assessee had made certain....

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....tain conditions. Reliance is placed on condition No.6 of the said letter to drive home the point that the said fixed term deposit was made for the purpose of availing the said credit facilities. 6. Heard the learned counsel appearing for the appellant/assessee and the learned standing counsel appearing for the respondent/Department. 7. The appellant/assessee claims to be a 100% export oriented unit, which fact is not in dispute. According to the assessee, for the purpose of availing term loan of Rs. 21,40,000/=, the bank required the assessee to make a term deposit of Rs. 15 Lakhs. In support of the said submission, reliance was placed by the learned counsel for the appellant/assessee on condition No.6 of the letter of the bank, dated 2.8....