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2016 (9) TMI 1251
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.... as under:- "1. Whether the learned ITAT was right in law in holding that interest received is income from other sources when on the same facts, identical circumstances and order of even date the learned ITAT held in Asstt. Year 1993-94 that it is Income from Business. 2. Whether the learned ITAT was right in law in restricting the deduction u/s 80 HHC of the IT Act to Rs. 24,13,732/- against the claim at Rs. 25,16,509/-" 3. In view of the decision of the Hon'ble Supreme Court in case of ACG Associated Capsules Pvt. Ltd. vs. Commissioner of Income Tax, Central IV, Mumbai reported in [2012] 18 taxmann.com 137 (SC); wherein the Supreme Court while considering Section 80HHC under paragraph 9, 10 & 11 held as under: ....
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.... clause (1) of the Explanation (baa) would mean only such receipts by way of brokerage, commission, interest, rent, charges or any other receipt which are included in the profits of the business as computed under the head "Profits and Gains of Business or Profession". Therefore, if any quantum of the receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature is allowed as expenses under Sections 30 to 44D of the Act and is not included in the profits of business as computed under the head "Profits and Gains of Business or Profession", ninety percent of such quantum of receipts cannot be reduced under Clause (1) of Explanation (baa) from the profits of the business. In other words, only ninety ....
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.... (baa) has to be construed on its own language and as per the plain natural meaning of the words used in Explanation (baa), the words "receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits" will not only refer to the nature of receipts but also the quantum of receipts included in the profits of the business as computed under the head "Profits and Gains of Business or Profession" referred to in the first part of the Explanation (baa). Accordingly, if any quantum of any receipt of the nature mentioned in clause (1) of Explanation (baa) has not been included in the profits of business of an assessee as computed under the head "Profits and Gains of Business or Profess....