TMI Blog2011 (2) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... Rajendra Singh, V.D. Rao, JJ. Paras Savla for the Appellant Pavan Ved for the Respondent ORDER Rajendra Singh:- 1. These cross appeals are directed against the order dated 4.1.10 of CIT(A) for the assessment year 2003-04. These appeals are being disposed off by a single consolidated order for the sake of convenience. The dispute raised in these appeals relates to allowability of deduction under section 80HHF in relation to interest income and lease rental income from lease of IRD Boxes. 2. We first taken up the appeal of the assessee in ITA No.1988/M/2010. The only dispute raised in this appeal is regarding deduction of 90% of lease rental income while computing the profit of business as per Explanation to sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 90% of lease rental income was to be deducted from the profit of business. The AO in the fresh assessment following the order of CIT under section 263 deducted 90% of gross lease rental income from the profit of business while computing deduction under section 80HHF. In appeal CIT(A) following the decision of tribunal dated 29.9.2009 held that lease rental income was an independent item of income and not integral part of the operational part of income of the assessee and therefore 90% of the same was required to be deducted. CIT(A) accordingly confirmed the order of AO aggrieved by which the assessee is in appeal. The assessee has raised the following ground of appeal:- "1. (i) The Hon.CIT(A) has confirmed deduction 90% of Lease Renta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Learned DR submitted that it was not clear whether the IRD Boxes were necessary for running of TV Channels and whether the lease rental income could really be assessed as business income. 2.2 We have perused the records and considered the rival contentions carefully. We find that the lease rental income has been treated by the authorities below as incidental business income but as an independent item and 90% of the same has been deducted from profit of business. The assessee has not raised any ground that the entire lease rental income should be treated as part of the operational income and 90% of the same should not be deducted as per the Explanation to section 80HHF. The only ground raised by the assessee is that 90% of net renta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as income from other sources. The assessee had challenged the order of CIT under section 263 and the tribunal in the order dated 29.9.2009 in ITA no.265/M/2008 did not uphold the view taken by the CIT under section 263. The tribunal noted that the assessee was engaged in two businesses being export of film software etc and financing business and the surplus from the export business was being utilized in the other business of financing. The character of interest income was therefore of the nature of business income and not income from other sources. The tribunal therefore did not find any infirmity in the order of AO deducting 90% of interest from profit of business treating the interest as business income. In the fresh assessment the AO tre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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