TMI Blog1999 (7) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the court was delivered by MRS. K. K. USHA J.---These appeals are at the instance of the assessee. They arise from a common order passed by the Income-tax Appellate Tribunal, Cochin Bench, in I. T. A. Nos. 262, 263 and 264 (Coch.) of 1998. The relevant assessment years are 1989-90 1990-91 and 1991-92. The assessee is a partnership firm engaged in the business of purchase and export of hil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also dismissed. The Income-tax Appellate Tribunal held that the interest receipts can be treated under "other sources" and, therefore, the assessee's claim for deduction under section 80HHC on the above income has only to be denied. Reliance was placed by the Tribunal on Collis Line Pvt. Ltd. v. ITO [1982] 135 ITR 390 (Ker) as well as CIT v. Cochin Refineries Ltd. [1985] 154 ITR 345 (Ker). It w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance-sheet and they were taken into account for claiming the credit limits. According to the Tribunal, there is no evidence in the form of a letter from the bank manager insisting on fixed deposits for availing of loan. The Tribunal did not accept the contention of the assessee that the assessee was compelled to make deposits with the bank for availing loan facilities. Learned counsel for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement with the Tribunal that in the nature of the business carried on by the assessee, namely, export business, the interest received by it from the fixed deposit cannot be treated as business income. This aspect has been considered by a Bench decision of this court in CIT v. Cochin Refineries Ltd. [1985] 154 ITR 345. In that case the claim was under section 80-I of the Income-tax Act. The follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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