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2018 (4) TMI 715 - HC - Income TaxDeduction u/s 80HHC disallowed in respect of the interest, rent and miscellaneous income earned out of business operations - Held that:- This question is to be answered in favour of the Revenue and against the assessee in the light of the decision, in the case of Commissioner of Income Tax Vs. K.Ravindranathan Nair reported in (2007 (11) TMI 10 - Supreme Court of India) Whether Tribunal was right in law in holding that 90% of the gross receipts should be excluded from the profits of the business under clause (baa) of Explanation to section 80HHC of the Act? - Held that:- This issue has been decided by the Hon'ble Supreme Court in the case of ACG Associated Capsules (P) Ltd. Vs. Commissioner of Income Tax [2012 (2) TMI 101 - SUPREME COURT OF INDIA]asheld Ninety per cent of the net interest or net rent which has been included in the profits of the assessee as computed under the head profits and gains of business or profession and not the gross rent, is to be deducted under c;.(1) of Expln. (baa) to Section 80HHC for determining the profits of the business. - thus the matter should be remanded back to the Assessing Officer to take note of the legal position and redo the assessment under the said head.
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