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THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 Versus ATUL LIMITED

2017 (2) TMI 224 - GUJARAT HIGH COURT

Interest charged /earned from purchasers for the period of 90 days on the delayed payment of sale consideration - whether 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 assessee is allowable the deduction under Section 80HHC? - Held that:- Identical question came to be considered by the Division Bench of this Court in the case of Nirma Industries Ltd. Vs. Deputy Commissioner of Income-tax reported in [2006 (2) TMI 92 - .....

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ed for the purpose of computation of deduction under Section 80HHC of the Act. No substantial question of law arises in the present Tax Appeal. - TAX APPEAL NO. 916 of 2016 - Dated:- 23-1-2017 - MR. M.R. SHAH AND MR. B.N. KARIA, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal, Ahmedabad D Bench, Ahmedabad (here .....

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ng 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 therefore, has no nexus with the profit of the as .....

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exclude the finance changes for a credit period of 90 days under Section 80HHC of the Act, revenue has preferred the present Appeal with the above stated questions. [3.0] Ms. Mauna Bhatt, learned advocate appearing on behalf of the revenue has submitted that the learned tribunal has not properly appreciated the fact that the interest charged by the assessee for the period of 90 days on delayed payment of sale consideration by the purchaser has no nexus with the business activities. It is submitt .....

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ion 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 p .....

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re the Division Bench the question was with respect to interest received on late payment of sale consideration and the question was whether the said amount can be said to be arrived from business or not. It is specifically observed and held by the Division Bench of this Court that such amount of interest received on late payment of sale consideration can be said to have been derived from business and the same is included in profits for the purpose of Section 80-I of the Income Tax Act, 1961. The .....

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