TMI Blog2007 (5) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. Yogesh Putney for the respondent. JUDGMENT The judgment of the court was delivered by Vijender Jain C. J.— The assessee has preferred the present appeal against the order of the Income-tax Appellate Tribunal, Delhi Bench, dated November 30, 2004, pertaining to the assessment year 1997-98. 2. The assessee, who is in the business of ginning and pressing of cotton, filed the return of income on November 21, 1997, at an amount of Rs. 8,63,500 for the assessment year 1997-98. The assessing authority disallowed the deduction under sections 80HH and 80-I of the Income-tax Act, 1961, in respect of the amount of Rs. 2,76,009, which was claimed by the assessee as an income on account of the interest and carrying charges, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions under the following heads : (i) Rent receipt ; (ii) Interest receipt ; and (iii) Weighment charges ; and pleaded that this be treated as income derived from the industrial undertaking. The interest income was received from the customers on account of the belated payments of the sale proceeds of the manufactured articles. Reliance was placed on the decisions in Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278 (SC) and CIT v. Paras Oil Extraction Ltd. [1998] 230 ITR 266 (MP). While interpreting the words "derived from" the apex court in Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278 observed as under (headnote) : "The words 'derived from' in section 80HH of the Income-tax Act, 1961, must be understood as someth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of the delayed payments and treated it to be at par as that what has been derived from a fixed deposit. 9. We have considered the arguments of learned counsel for the appellant and that of the respondent who had tried to justify the order of the Tribunal by saying that it was the failure of the appellant to adduce the evidence to establish that the interest was on account of the belated payments. 10. On a perusal of the orders of the previous years wherein similar benefit had been allowed, it transpires that there was no distinction between the assessment and the benefit claimed for them and the year under question, i.e., 1997-98. That being so, the Tribunal was clearly unjustified in not allowing the benefit under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
