2007 (6) TMI 147

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....ection 260A of the Income Tax Act, 1961 by the assessee, against the order of the Income Tax Appellate Tribunal, Bench "B", Chennai in I.T.A. No.1546/Mds/2005 dated 28.09.2006 raising the following substantial question of law:- "Whether the Tribunal was right in holding that the interest payment is not allowable under Sec.57 of the Income-tax Act?" 2. The facts leading to the above substanti....

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....ct relation with the interest received and hence the expenditure has to be allowed as deduction from the interest income. The Assessing Officer also rejected the method of computation of income.  Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals).  The C.I.T.(A) allowed the appeal.  Aggrieved, the Revenue filed an appeal to the Income-ta....

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....aimed the entire income as exempt under Section 10B of the Act.  The details regarding the other income of Rs.16,82,777/- are as follows:-             (a) Exchange Fluctuation Gains : (b) Interest on Deposits             : Rs.9,47,568/- Rs.7,35,209/- 6. The Asse....

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.... IFU loan 7,63,135 Average balance of IFU loan 1,00,14,363 Rate of interest payments "A"         0.08 Interest on Bank Fixed Deposits 7,35,209 Average balance of Bank FD 82,27,267 Rate of interest receipts "B" 0.09 Profit margin (B-A) 0.01 Profit on finance activities   Average balance of bank FD x Profit ....