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2018 (12) TMI 463 - HC - Income TaxDeduction u/s 80HHC - interest income in toto forms part of eligible business profits for the purpose of deduction u/s 80HHC and only 90% has to be excluded from the business profits - whether the deposits made by the assessee with the banks had an immediate nexus with the business? - Held that:- The matter requires a fresh adjudication and a fresh look by the AO by thoroughly examining the factual position and bearing in mind the legal position pointed out in the preceding paragraphs. During the course of such proceedings it is open to the assessee to place all their submissions including the submission based on the decision in the case of ACG Associated Capsules (P) Ltd. [2012 (2) TMI 101 - SUPREME COURT OF INDIA]. The appeal filed by the Revenue is allowed, the order passed by the Tribunal as well as the CIT(A) are set aside, the assessment order dated 31.01.2006, on this particular head alone namely, the entitlement for deduction under Section 80HHC is set aside and the matter is remanded to the Assessing Officer for a fresh consideration to proceed in accordance with law in the manner indicated above.
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