2017 (7) TMI 733

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..... oner of Income Tax v. Shri Ram Honda Power Equip (2007 (1) TMI 86 - HIGH COURT, DELHI) inter alia held that the word "interest" in clause (baa) of Explanation to Section 80 HHC connotes "net interest" and not "gross interest". "Therefore in deducting such interest the Assessing Officer will take into account the net interest i.e. the gross interest as reduced by the expenditure incurred for earni .....

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..... paid by it from the interest received by it, while calculating deduction under Section 80-HHC(4A) read with Explanation (baa) of the Income tax Act, 1961? 3. Subsequently, this Court has in its decision in Commissioner of Income Tax v. Shri Ram Honda Power Equip (2007) 289 ITR 475 (Del) inter alia held that the word interest in clause (baa) of Explanation to Section 80 HHC connotes net in .....

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..... for a fresh determination. 5. As pointed out by Mr. Simran Mehta, learned counsel for the Assessee, this question was also dealt with in Commissioner of Income Tax v. Shri Ram Honda Power Equip (supra) wherein it was observed as under: 37. However, we must add a caveat here. This holding of ours will apply only where there is a specific finding by the AO that interest income is not busines .....

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