2003 (3) TMI 48

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....ax Appellate Tribunal erred in taking the view that the amount of Rs. 5,34,572 earned by way of interest by the assessee was income from other sources and thus could not be included under section 80HHC of the Income-tax Act, 1961? This is the short question that arises for consideration in this appeal under section 260A of the Act. A few facts may be noticed. The assessee is engaged in the busi....

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....sessee had claimed a carry forward of business loss amounting to Rs. 91,13,180. Still further, the assessee had claimed "a sum of Rs. 20,350 towards deduction under section 80HHC(1A)...". After consideration of the matter, the Assessing Officer had found that deduction under section 80HHC(1A) can be claimed only in respect of the amount for which the prescribed certificate as contemplated under su....

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.... deposit which had been made by way of 20 per cent. of the sale proceeds during the relevant period. There is nothing on record which may even remotely indicate that an amount of Rs. 5,34,572 would have accrued as interest on the deposit during the relevant period. In this situation, we find no infirmity in the view taken by the Tribunal. It deserves mention that the assessee can claim deduction i....

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....eferred to the decision of their Lordships of the Supreme Court in CIT v. Karnataka State Co-operative Apex Bank [2001] 251 ITR 194. In this case, their Lordships were dealing with the provision contained in section 80P. The issue was whether "the Appellate Tribunal was right in law in holding that the interest income arising from the investment made out of the reserve fund is exempt under section....