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2003 (3) TMI 66 - HC - Income Taxassessee is a leading exporter of spices in South India. Assessee claimed deduction under section 80HHC of the Act in respect of interest received on fixed deposits. The assessee had also excluded the agency despatches from the total turnover for the computation of the deduction under section 80HHC. Both the claims were rejected by the Assessing Officer. - "1. Whether, the interest income of Rs. 19,40,886 is assessable under the head 'Business income'? - 2. Whether, can the interest be said to be an income directly connected with the business in the sense the income is generated by the business? - 3. Whether, interest income is eligible to be considered for deduction under section 80HHC? - We answer questions Nos. 1 to 3 in favour of the Revenue and against the assessee. – Further, we hold that the turnover of agency transactions will not form part of the total turnover in clause (b) of sub-section (3) of section 80HHC
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