TMI Blog2003 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... he income received by way of rent, could not be treated as "business income" particularly when leasing out of such properties was not the business of the assessee – Further, Tribunal was legally correct in holding that the claim for deduction u/s 80HHC, in respect of interest income from FDRs was not sustainable - IT Appeal No. 2 of 2003 - - - Dated:- 7-10-2003 - Judge(s) : N. K. SODHI., V. M. JAIN. JUDGMENT This appeal by the assessee filed under section 260A of the Income-tax Act, 1961 (for short, "the Act") is directed against the order dated September 26, 2002, passed by the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal"), whereby the appeals filed by the Revenue against the order of the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineering Co. Ltd. [2000] 244 ITR (St.) 54?" Having heard learned counsel for the appellant, we are of the view that none of the questions raised is a question of law much less a substantial question of law and, therefore, the appeal deserves to be dismissed. As regards question No. (i), it is urged that in view of the Board's Circular No. F-279/126/98-ITJ, dated March 27, 2000, the appeals filed by the Department were not maintainable because the tax effect did not exceed Rs. 1,00,000 in each assessment year and, therefore, according to the circular, the Department could not prefer an appeal. From the perusal of the order of the Tribunal, it is clear that no such plea was raised before the Tribunal and, therefore, we are not allowing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue also does not involve any substantial question of law. Re. (iii): This issue relates to the inclusion of interest as part of the assessee's "business income" for working out the deduction claimed under section 80HHC of the Act. The total interest received by the assessee during the relevant assessment year was Rs. 6,33,454 and the total interest paid by the assessee was Rs. 4,12,982. The Assessing Officer was of the view that 90 per cent of the gross amount of interest of Rs. 6,33,454 was liable to be deducted from the profits of the business for the purpose of deduction. He, therefore, reduced the quantum of deduction under section 80HHC of the Act accordingly. The Commissioner of Income-tax (Appeals), however, took a different v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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