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2009 (10) TMI 48 - HC - Income TaxInterest on Fixed Deposit – Claim u/s 80HHC - The AO worked out the deduction under Section 80HHC by adopting negative figure and computed the figure accordingly, thereby making a deduction of Rs.28,88,993/- held that - Interest earned on fixed deposits for the purposes of availing credit facilities from the bank, does not have an immediate nexus with the export business and thereforee has to necessarily be treated as income from other sources and not business income – duty drawback are not - “For purposes of such computation both profits and losses have to be taken into account. Thus the word profit in section 80 HHC (3) will mean profits after taking into account losses if any. More importantly in our view the term profit in section 80 HHC both in sub section (1) and in sub section (3), means a positive profit worked out after taking into consideration loses if any. Thus the word “profit” has the same meaning in section 80 HHC sub section (1) and (3)
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