TMI Blog2008 (4) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaking of the assessee in light of the provisions of section 80HH - even though the assessee has realised income from other sources, Assessing Officer is directed to recompute the deduction under sec.80HH. - 124 of 2005 - - - Dated:- 1-4-2008 - DR. S. RADHAKRISHNAN and J. P. DEVADHAR JJ. P. S. Sahadevan for the appellant. Dr. K. Shivram for the respondent. JUDGMENT 1. Heard l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be treated as interest income derived from the industrial undertaking of the assessee in light of the provisions of section 80HH of the Income Tax Act, 1962 and the findings of Commissioner of Income-tax (Appeals) in its order dated 13-11-2002, in this regard even though the assessee has realised income from other sources? 2. The relevant assessment year is 1999-2000. 3. We have peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he industrial undertaking and have direct nexus with the sales which in turn linked to industrial undertaking. The Hon'ble Madres High Court in the case of CIT v. Madras Motors Ltd. [2002] 257 ITR 60 had dealt with identical issue and held that if the purchasers did not make the payments and then agree to pay interest on the delayed payments, the said interest could directly be relatable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to follow the decisions of Madras High Court reported CIT v. Madras Motors Ltd. [2002] 257 ITR 60 and the Third Member decision reported in Kirloskar Electrodyne Ltd. v. Deputy CIT [2004] 271 ITR (AT) 69 (Pune) ; [2003] 87 ITD 264 (Pune) and decide the issue in favour of the assessee. Hence, following the above decisions, we direct the Assessing Officer to consider the interest received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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