2012 (10) TMI 1230

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....learned counsel for the parties, identical question of law and facts are involved in both the cases. However, the facts are being extracted from ITA No.74 of 2009. 2. ITA No.74 of 2009 has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 20-12-2007, Annexure A.4 passed by the Income Tax Appellate Tribunal, New Del....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f the Act, the Assessing Officer found that the assessee had received interest income at ₹ 3,14,218/- on fixed deposits in the assessment year under consideration. Vide order dated 9.3.2000, Annexure A.1, the Assessing Officer held that the assessee derived income from manufacturing of fabrics and the interest on fixed deposits cannot be considered as income derived from such business. It wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es'. Vide order dated 20-12-2007, Annexure A.4, the Tribunal dismissed the miscellaneous application. Hence the present appeals by the revenue. 4. We have heard learned counsel for the parties and perused the record. 5. The issue involved herein is whether it is the net interest which has to be taken into account while computing deduction under Section 80HHC of the Act as per Explanation (ba....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al is against not allowing deduction under section 80HHC on net interest earned by the assessee. It was noticed by the Assessing Officer that the assessee had received interest of ₹ 3,14,218/- on FDR. As against this, it had paid interest to the tune of ₹ 4,63,645/-. The Assessing officer was of the view that while applying the provisions of clause (baa) of the Explanation to section 8....