TaxTMI 
TaxTMI 
2015 (2) TMI 115
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....p; 1) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the scrap sales is to be excluded from the total turn over for the purpose of computing the income under Section 80 HHC of the Income Tax Act, 1961? 2) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in restricting the expenditure on earning exempt income to 2% when the assessing officer has proved on a scientific basis that the interest paid on loans taken for investment in the exempt bonds was much larger? 2. The appellant/assessee is in the manufacture and sale of cycle, c....
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....ourt in the cases of CIT - Vs -Sundaram Fasteners Ltd. (272 ITR 652) and CIT - Vs - Wheels India Ltd. (2005 (275) ITR 319), wherein it was held that excise duty and sales tax would not form part of the total turnover for the purpose of computing deduction under Sec. 80 HHC of the Act. Respectfully following the above decisions of the Hon'ble Madras High Court in the cases cited supra, we decide the issue in favour of the assessee and against the Revenue. As regards the issue of scrap sales, it is covered by the decision of the Hon'ble Madras High Court in the case of Fenner (India) Ltd. - Vs - CIT (2000 (241) ITR 803) and the Tribunal's order in the case of M/s.Moorco (India) Ltd. Respectfully following the abo....
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....ribunal, Chennai Bench 'C' in the case of Southern Petro Chemical Industries - Vs - DCIT (2005 (93) TTJ 161), wherein it was held as under :- Exemption under S. 10 (33) - Dividend - Expenditure attributable to earning of dividend - Investment decisions are very strategic decisions in which top management is involved and, therefore, proportionate management expenses are required to be deducted while computing the dividend income for the purpose of exemption under S. 10 (33). Respectfully following the decision of the Tribunal, this issue is allowed partly. 8. It is brought to the notice of this Court that the 2nd question of law has also been decided against....