TMI Blog2006 (3) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchasers of the forgings did not make the payments for the forgings and then agree to pay the interest on the delayed payments, the said interest would have direct nexus with the business of forgings. The true test would be whether such interest would be available to the assessee otherwise also. - interest being directly relatable only to the amounts receivable by the assessee during the cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94 claiming a relief on interest on over dues from trade debtors under sections 80HH and 80-I. The Assessing Officer disallowed the same on the ground that the interest was not derived from industrial activity and therefore, the assessee company is not eligible for deduction under section 80HH and brought the same to tax. Aggrieved by the said order, the assessee preferred an appeal before the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eded by the learned counsel appearing for the Revenue that the issue raised in the above question of law is covered against the Revenue by the decision of this court in CIT v. Madras Motors Ltd./M.M. Forgings Ltd. [2002] 257 ITR 60. It is settled law that there can be no doubt that the interest earned on the belated payment would, however, be directly relatable to the business of the assessee of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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