2017 (2) TMI 224

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r the appellate tribunal is right in law and on facts in directing not to exclude the finance charges for the purpose of computation of deduction under Section 80HHC of the Act? (b) Whether the appellate tribunal is right in law and on facts in holding that interest received for providing credit should not be deducted for the purpose of computation of deduction under Section 80HHC of the Act? [2.0] The issue is with respect to the interest charged by the assessee on delayed payment of sale consideration by the purchaser (for a period of 90 days). The Assessing Officer held that the interest charged by the assessee for a period of 90 days on the delayed payment of sale consideration has no nexus with the business activities, and therefor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ions, she has heavily relied upon the decision in the case of Commissioner of Income-tax, Thiruvananthapuram Vs. K. Ravindranathan Nair reported in 2007 (295) ITR 228. Making the above submissions and relying upon the above decision of the Hon'ble Supreme Court, it is requested to admit the present Appeal. [4.0] Heard the learned Counsel appearing on behalf of the revenue at length. As observed hereinabove, the question, which is posed for the consideration of this Court is, whether the interest charged /earned by the assessee from its purchasers for the period of 90 days on the delayed payment of sale consideration can be said to be income from other sources and /or it can be said to have nexus with its business activities for which the ....