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TMI Blog2017 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... er the appellate tribunal is right in law and on facts in directing not to exclude the finance charges for the purpose of computation of deduction under Section 80HHC of the Act? (b) Whether the appellate tribunal is right in law and on facts in holding that interest received for providing credit should not be deducted for the purpose of computation of deduction under Section 80HHC of the Act? [2.0] The issue is with respect to the interest charged by the assessee on delayed payment of sale consideration by the purchaser (for a period of 90 days). The Assessing Officer held that the interest charged by the assessee for a period of 90 days on the delayed payment of sale consideration has no nexus with the business activities, and therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions, she has heavily relied upon the decision in the case of Commissioner of Income-tax, Thiruvananthapuram Vs. K. Ravindranathan Nair reported in 2007 (295) ITR 228. Making the above submissions and relying upon the above decision of the Hon'ble Supreme Court, it is requested to admit the present Appeal. [4.0] Heard the learned Counsel appearing on behalf of the revenue at length. As observed hereinabove, the question, which is posed for the consideration of this Court is, whether the interest charged /earned by the assessee from its purchasers for the period of 90 days on the delayed payment of sale consideration can be said to be income from other sources and /or it can be said to have nexus with its business activities for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, it cannot be said that interest earned on late payment of sale consideration would be the amount derived from business. [4.1] Now so far the reliance placed upon the decision of the Hon'ble Supreme Court in the case of Ravindranathan Nair (Supra) is concerned on considering the facts of the case before the Hon'ble Supreme Court, we are of the opinion that the said decision would not be applicable to the facts of the case on hand. In the case before the Hon'ble Supreme Court the assessee claimed the deduction with respect to the charges paid for purchasing material of the purchasers. To that it was held that the same cannot be permitted to be deducted and the same cannot be said to be as income earned by business. As observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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