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2015 (2) TMI 365 - HC - Income TaxDeduction under Section 80HHC - deduction of interest in the context of determining the profits of business under Clause (baa) of Explanation to Section 80HHC - Held that:- In deducting such interest, the AO will take into account the net interest i.e. gross interest as reduced by expenditure incurred for earning such interest. The decision of the Special Bench of the ITAT in Lalsons [2004 (2) TMI 294 - ITAT DELHI-E ] to this effect is affirmed. We differ from the judgments of the Punjab & Haryana High Court in Rani Paliwal [2003 (10) TMI 18 - PUNJAB AND HARYANA High Court] and the Madras High Court in Chinnapandi [2006 (1) TMI 65 - MADRAS High Court ]. We are in agreement with the same. The only sentence, which we propose to added to Clause (i) is that by whatever terminology one may call it, it is the same component of interest that has gone into, while computing profits and gains of business or profession in whatever form, that would qualify for reduction to the extent of 90% under the Clause. - Decided in favour of assessee.
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