TMI Blog2010 (8) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 2003-04 against the order passed under section 143(3) of the Income-tax Act, 1961. The issue raised in the present appeal is against recomputation of deduction under section 80-IB of the Act. The assessee is aggrieved by the part disallowance of deduction under section 80-IB of the Act on account of interest, royalty and lease rent amounting to Rs. 14,02,427. Though the grounds of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 200405. The learned Departmental representative for the Revenue placing reliance on the order of the Commissioner of Income-tax (Appeals) pointed out that in view of the ratio laid down by the hon'ble Supreme Court in Liberty India v. CIT [2009] 317 ITR 218, the order of the Commissioner of Income-tax (Appeals) is to be upheld. We have heard the rival contentions and perused the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under: "4. We have heard the rival contentions and perused the records. While computing the profits of the business eligible for deduction under section 80-IB of the Act, the interest income is to be excluded from the profits of business. The assessee during the year under consideration had earned gross interest of Rs. 12,18,483 and after deducting the interest paid on borrowings, the net int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing deduction under section 80-IB of the Income-tax Act. However, in order to verify the nexus between the interest earned on bank deposits and interest expended on the borrowings, we remit the matter back to the file of the Assessing Officer to verify the claim of the assessee and in case the assessee is able to establish the nexus between the two, netting-off of the interest income against i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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