2007 (1) TMI 582

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 8-7-2006 and the respondent has been served. 2. On going through the order of the Assessing Officer, the CIT(A) and the impugned order of the ITAT, we admit this appeal and frame the following questions of law for consideration : "(a)Whether ITAT was correct in law in holding that assessee is entitled to reduce interest paid by it from the interest received by it while calculating deductio .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 1-2007, we hold that the interest received on FDRs, pledged for obtaining shipping loan/depository loan was not business income. Question (b) is answered accordingly. Consequently questions (a) and (c) are answered in the negative, i.e., in favour of the revenue and against the assessee. 4. The impugned order of the ITAT is set aside. The matter be sent to the concerned Assessing Officer for reco .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X