TMI Blog1992 (7) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... d not as income from other sources and the deduction under s. 80HHC was allowed on that basis. Further, it is contended that in terms of provisions of s. 80 AB, the interest income on bank deposits which is to be assessed under other sources should be excluded from the income from business for purpose of s. 80 HHC. 2. The assessee is a registered firm engaged in the export of coir yarn. It had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the grievance of the assessee. Subsequent to the passing of the original appellate order, the CIT(A) has rectified his order under s. 154 holding that the fixed deposits had a nexus with the business of the assessee and the income emanating therefrom should be assessed as income under the head business and the Revenue has treated such income as business income in the earlier years also and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as business income assessable under the head business and not under other sources. 5. The assessee is an exporter of choir products. It used to get cash assistance from the Government on its exports. Part of the cash assistance is converted into deposits under reinvestment plan scheme with the banks. These deposits are found to have been given as collateral security for the loans obtained by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly assessable under the head other sources still the provisions of 80 AB will not be attracted to the facts of the case for the asst. yr. 1983-84. Shri Srinivasan, the learned representative of the assessee is right in his alternative submission that s. 80HHC as it stood in the asst. yr. 1983-84 did not relate the deduction envisaged under that section to the income earned from export business. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 80HHC. In this view of the matter, we are supported by the decision of the Ahmedabad Bench of the Tribunal in the case of ITO vs. Aruna mills Ltd. (1986) 26 TTJ (Ahd) 307. Thus, in any view of the matter, the order of the CIT(A) has to be upheld. 7. In the result the departmental appeal is dismissed and the assessee's appeal is also dismissed as infructuous. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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