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2016 (8) TMI 155 - HC - Income TaxDeduction under Section 80 HHC cannot be permitted in case of loss or negative profit. In that view of the matter, the contention raised by the revenue is required to be accepted. Whether net interest or gross interest should be considered while computing deduction under Section 80 HHC - Held that:- Tribunal was right in law and on facts in holding that net interest should be considered instead of gross interest while computing the deduction u/s.80HHC of the Act. See ACG Associated Capsules Pvt. Ltd. v. Commissioner of Income-Tax [2012 (2) TMI 101 - SUPREME COURT OF INDIA ] Whether the ITAT was right to include interest income in the eligible profits for computing the deduction u/S.80HH & 80IA of the Act of 1961 though there is no immediate and direct nexus with the industrial activities of the assessee? - Held that:- As decided in GASKETS AND RADIATORS DISTRIBUTORS [2006 (9) TMI 97 - GUJARAT HIGH COURT ] Tribunal as well as the C.I.T. (Appeals) both have committed an error in treating the income of interest on deposits, export incentive, octroi refund and sales in India to be part of the total profits to work out total turnover and qualifying profit and treating the same as business income, and the Income Tax Appellate Tribunal was not right in allowing the assessee's claim regarding rebate under Section 80HHC of the Act by holding that the receipts such as interest on deposits, export incentive, octroi refund, and sales in India would form part of the total profits and to work out the total turnover and qualifying profits. - Decided against assessee
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