TMI Blog2013 (1) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... per Clause (baa) of the explanation to Section 80HHC. The order passed by the Tribunal in the miscellaneous application being in conformity with the order in case of ACG Associated Capsules Private Limited (2012 (2) TMI 101 - SUPREME COURT OF INDIA). In favour of assessee - ITA No.479 of 2005 (O&M) - - - Dated:- 10-10-2012 - MR. AJAY KUMAR MITTAL AND MR. GURMEET SINGH SANDHAWALIA JJ. Present: Mr. Vivek Sethi, Advocate for the appellant. Mr. Rajiv Sharma, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. This order shall dispose of ITA Nos.479 and 480 of 2005 as according to learned counsel for the parties, identical question of law and facts are involved in both the cases. However, the facts are being extracted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - was more than the interest received. The Assessing Officer computed deduction under Section 80HHC of the Act after reducing the total amount of interest at Rs. 9,42,827/- from profits of the business and allowed deduction under Section 80HHC of the Act amounting to Rs. 3,21,72,621/-. Assessment under Section 143(3) of the Act was completed at an income of Rs. 2,69,390/- on 22.2.1996, Annexure A.1. Aggrieved by the order, the assessee went in appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 21.5.1997, Annexure A.2, the appeal was partly allowed and it was directed that interest amounting to Rs. 9,42,827/- be not excluded from business profits while computing deduction under Section 80HHC of the Act. Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case vide order dated 21.10.2002, Annexure A.3 decided the issue in favour of the revenue holding that under the new provision effective from 1.4.1992, it is the 90% of receipt by way of interest which has to be excluded from the profits of the business and not the amount after netting of interest receipt and interest paid. Moreover, the interest paid was not on loans utilised for making the deposits on which the interest was received. Thereafter, a miscellaneous application was filed by the assessee for modification of order dated 21.10.2002, Annexure A.3 contending that while working out deduction under Section 80HHC of the Act, 90% of receipt by way of interest had to be excluded from profits of business taking net interest i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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