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2012 (7) TMI 362 - AT - Income TaxDisallowance of deduction u/s 80-IC - an interest income earned by the assessee - deletion of administrative expenses paid for earning gross interest income as net interest income has to be disallowed from the eligible profit - Held that:- Since the assessee has not advanced any arguments with regard to the proposition that on interest income deduction u/s 80-IC no idea to examine the provisions of sec. 80-IC and in what condition the computation for such deduction has to be made - interest income on fixed deposit for the purpose of availing of credit facility from the bank does not have an immediate nexus with the business and, therefore, it has to necessarily be treated as income from other sources and not business income - as the net interest income which has to be excluded from the eligible profit for grant of deduction under sec. 80-IC and Learned first appellate authority on an ad hoc basis allocated 50,000 rupees towards administrative expenses for earning interest income, remit the issue to the file of the Assessing Officer for allocation purposes.
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