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2014 (12) TMI 723 - HC - Income TaxComputation of deduction u/s 80HH – Interest earned from debtors on delayed payment - Whether the Tribunal is correct in holding that the interest earned from Trade Debtors on account of delayed payment should be treated as profits derived from the Industrial Undertaking of the assessee for the purpose of computing the relief u/s 80HH – Held that:- Assessee was undertaking only one activity viz., manufacture of cold roll strips - The income posted by him in the income tax returns comprised mostly of the sale proceeds of product manufactured by it - whatever may be the fluctuations in the trade in relation to a product, what becomes relevant from the point of view of Section 80HH of the Act, is the profit and gain, which the assessee has derived from the activity - not only from the point of view of Section 80HH of the Act but also in the ordinary parlance, the interest paid by the purchaser on account of bleated payment, becomes part of the consideration and partakes the character of price – relying upon CIT v. Raja Bahadur Kamakhaya Narayan Singh [1948 (7) TMI 1 - Privy Council] - the interest payable to him certainly partakes of the same character as the receipts for the payment of which he was otherwise entitled under the contract and which payment has been delayed as a result of certain disputes between the parties - It cannot be separated from the other amounts granted to the assessee under the awards and treated as income from other sources – thus, the order of the Tribunal is upheld – Decided against revenue.
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