TMI Blog2016 (9) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... come. The income involved is not a business income, therefore, naturally they will not be entitled to benefit under Section 80HHC and view taken by the Tribunal is required to be upheld and for the same, the issue is answered in favour of Department and against the assessee. - D.B. Income Tax Appeal No. 62/2003 - - - Dated:- 8-9-2016 - MR. K.S. JHAVERI MR. BANWARI LAL SHARMA JJ. Mr. Siddarth Ranka for the appellant. Mr. Anuroop Singhi for the respondent. 1. By way of this appeal, the assessee has assailed the judgment order of the Income Tax Appellate Tribunal whereby the Tribunal has dismissed the appeal preferred by the assessee and reversed the finding of the CIT (Appeals). 2. Counsel for the appellant has contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included. Similarly, in computation of such profits of business, different expenses which are allowable under Sections 30 to 44D have to be allowed as expenses. After including such receipts of income and after deducting such expenses, the total of the net receipts are profits of the business of the assessee computed under the head Profits and Gains of Business or Profession from which deductions are to made under clauses (1) and (2) of Explanation (baa). 10. Under Clause (1) of Explanation (baa), ninety percent of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in any such profits are to be deducted from the profits of the business as computed under the head Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessee being a company includes any income by way of dividends received by it from a domestic company, there shall, in accordance with and subject to the provisions of this Section, be allowed, in computing the total income of the assessee, a deduction from such income by way of dividends an amount equal to a certain percentage of the income mentioned in this Section. The Constitution Bench held that the court must construe Section 80M on its own language and arrive at its true interpretation according to the plain natural meaning of the words used by the legislature and so construed the words such income by way of dividends in sub-section (1) of Section 80M must be referable not only to the category of income included in the gross t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Reference No. 4/2003 decided on 11.9.2015 framed the following substantial question of law: Whether on the facts and circumstances of the case, the Tribunal was right in holding that the assessee was entitled to deduction under Secdtion 80HHC(1) in respect of interest of ₹ 3,62,342/earned by employing surplus funds locally, notwithstanding the provisions of sub-section 2(a) of section 80HHC? 6. The Court yielded in favour of revenue and against the assessee. 7. We have heard the learned counsel for the appellant and learned counsel for the respondents. 8. From the record, as interest is not the business income, in that view of the matter, the discretion of the Division Bench which was sought by counsel for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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