TMI Blog2012 (10) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... w and facts are involved in both the cases. However, the facts are being extracted from ITA No.74 of 2009. 2. ITA No.74 of 2009 has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dated 20-12-2007, Annexure A.4 passed by the Income Tax Appellate Tribunal, New Delhi Bench 'E' passed in Miscellaneous Application No.14/DE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest income at ₹ 3,14,218/- on fixed deposits in the assessment year under consideration. Vide order dated 9.3.2000, Annexure A.1, the Assessing Officer held that the assessee derived income from manufacturing of fabrics and the interest on fixed deposits cannot be considered as income derived from such business. It was accordingly held that as per Clause (baa) of Explanation to Section 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the miscellaneous application. Hence the present appeals by the revenue. 4. We have heard learned counsel for the parties and perused the record. 5. The issue involved herein is whether it is the net interest which has to be taken into account while computing deduction under Section 80HHC of the Act as per Explanation (baa) to Section 80HHC(4C) of the Act. The Hon'ble Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. It was noticed by the Assessing Officer that the assessee had received interest of ₹ 3,14,218/- on FDR. As against this, it had paid interest to the tune of ₹ 4,63,645/-. The Assessing officer was of the view that while applying the provisions of clause (baa) of the Explanation to section 80HHC, the profits of business have to be reduced by 90% of the interest receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame would be that it is the net interest which has to be taken into consideration while computing deduction under Section 80HHC as per Clause (baa) of the explanation to Section 80HHC of the Act. The order passed by the Tribunal being in conformity with the order of the Apex Court in ACG Associated Capsules (P.) Ltd.'s case (supra), it is held that the Tribunal was right in rejecting the misce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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