TMI Blog2002 (9) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... sit as income from other sources rather than business income and thereby denying deduction under s. 80-I of the Act on such income. 3. The assessee is a company engaged in the business of publishing of books and journals of Indian Customs and Central Excise Law and other related matters. It has earned certain income by way of interest. Claiming such income as business income, the assessee claimed deduction under s. 80-I of the Act on such income. However, the AO assessed the interest income under the head 'income from other sources' and thereby denied deduction under s. 80-I of the Act by observing that such interest income was not derived from the industrial undertaking. 4. On appeal, the CIT(A) upheld the findings of the AO against wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) was also not applicable because in that case, no live link between carrying on the business by the assessee and the income earned by the assessee existed. In order to prove that there was a live link between the income earned by the assessee and the business carried on by it, the learned counsel stated that the journal published by the assessee-company is available on annual subscription basis and the period of subscription is one year from January to December. The persons subscribing the journal are required to pay the entire annual subscription is advance and thereafter the parts of the journal are published on periodic intervals and despatched to the subscribers at fortnightly intervals from January to December. While fixing the an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, supported the order of the CIT(A). 10. We have considered the rival submissions. Admittedly, in the asst. yrs. 1990-91, the Tribunal has taken the view against the assessee but subsequently Delhi Bench of the Tribunal by its Third Member decision in the case of Gullium Equipments (P) Ltd. on the difference of opinion, held that if there was live link between the interest income earned by the assessee and the business carried on by the assessee then such income will have to be treated as business income derived from the industrial undertaking. Hon ble Supreme Court in the case Pradip Chandra Parija Ors. vs. Pramod Chandra Patnaik Ors. has held that the two member Bench was bound by the decision of Three Member Bench. The findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of law, we admit the same. 13. Hon ble Supreme Court in the case of Ranchi Club has approved the decision of Hon ble Patna High Court in the case of Udai Misthan Bhandar Complex Ors. vs. CIT Ors. (1997) 137 CTR (Pat) 376 wherein it was held that if no specific section was mentioned in the assessment order for levy of interest, such levy will be illegal. We have perused the assessment record and find that the AO has not directed to levy the interest at all, what to say of any particular section. In view of the decision of the Hon ble apex Court in the case of Ranchi Club, we hold the levy of interest under s. 234B in both the years was illegal and the same is deleted. 14. In the asst. yr. 1994-95, the issue of deduction under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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