TMI Blog2011 (11) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... 1009 & 1010 of 2004 - - - Dated:- 29-11-2011 - Mr.Justice P.JYOTHIMANI, Mr.Justice P.P.S.JANARTHANA RAJA, JJ. For Appellant : Mr.J.Naresh Kumar COMMON JUDGMENT P.JYOTHIMANI. J. The Revenue has preferred these tax case appeals as against the order 12.5.2004 passed by the Income Tax Appellate Tribunal, Chennai, 'B' Bench, in ITA Nos.1062 and 1063/(Mds)/1998, for the assessment years 1993-94 and 1994-95, suggesting the following substantial questions of law: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that only 90% of the net commission and not the gross commission receipts has to be deducted while arriving at the profits of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and deducted only 90% therefrom. Therefore, the assessing officer held that 90% of gross commission receipts has to be deducted from the profit of the business and accordingly made deductions under Section 80HHC for the said assessment years. 5. Aggrieved against the said orders of the assessing officer, the assessee filed appeals before the Commissioner of Income Tax (Appeals). The appellate authority has held that only 90% of the net commission has to be deducted from the profit of the business and accordingly, directed the assessing officer to redo the exercise. It was as against the said order of the Commissioner of Income Tax (Appeals), the Revenue has preferred appeals before the Income Tax Appellate Tribunal. 6. The Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative portion of which is extracted hereunder: In view of the above, we are of the view that 90 per cent of the interest that is deductible for the claim under Section 80HHC of the Act is from the gross interest received by the assessee and that the amount of interest paid by the assessee should not be deducted therefrom and, hence, we answer the above question in favour of the Revenue and against the assessee and allow the tax case filed by the Revenye. 10. It is seen that the Delhi High Court in the COMMISSIONER OF INCOME TAX V. SHRI RAM HONDA POWER EQUIP (2007) 289 ITR 475 (DELHI) has taken a different view and that came to be considered by the Division Bench of this Court in THE COMMISSIONER OF INCOME TAX VS. DEVARAJ NENSEE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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