Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 508 - HC - Income TaxExemption u/s 10B - Book profit u/s 115JA - Revised return - 100% export oriented unit - Scrutiny - whether the assessee was entitled to file a revised return and to withdraw the claim for exemption under section 10B of the I.T. Act, which had been claimed in the original return - Since there was a slump in the economy due to market conditions, the appellant probably felt that it would be impossible to maintain export sales to the extent of 75% of total sales in the following years - Since the appellant had filed the original return in time and the claim under section 10B had been made for the first time, he was free to withdraw the claim before any assessment was made Since interest is a revenue receipt, therefore, it is held to be a business income and since the interest income has been included in the profit & loss account, the interest paid on borrowed funds is automatically set off against the interest income - the interest earned on deposits which has been held to be business income and which is reflected in the profit & loss account, gets set off against the interest paid which debited to the profit & loss account.
|