TMI Blog2001 (3) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... e-firm is in the business of import and export of cut and polished diamonds. For the year under consideration, it returned a total income of Rs. 285 which was assessed to Rs. 3,50,440 under s. 143(3) of the IT Act, 1961 (the Act). During the year, assessee had paid total interest of Rs. 28,89,618 on borrowed funds and had received Rs. 3,50,158 as interest on moneys advanced. While computing business profits for the purpose of deduction under s. 80HHC, assessee had included the said sum of Rs. 3,50,158 in it. AO, however, observed that interest was earned in India from Indian sources and that the amount was not brought in convertible foreign exchange. Interest income, therefore, according to the AO did not qualify for deduction under s. 80HH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned can be allowed as interest expenditure. Thus, where the assessee had sought for entire exclusion of interest income even under the head other sources (interest expenditure being more), net interest income of Rs. 1,75,079 came to be taxed under the head other sources. It is against this 50 per cent allowance, the Department is aggrieved and is in appeal before us. 6. The contention of the learned Departmental Representative is that entire interest income should be taxed under the head other sources, whereas that of the learned counsel is that entire interest income should be excluded as interest paid is much more than interest earned. 7. We have considered the rival contentions and the material on record. From the facts narrated b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee did not have the benefit of the decision of Pink Star. Accordingly, when CIT(A) decided assessee's appeal in 1996, assessee-firm was not advised to prefer an appeal against the said order. Secondly, since the case of Pink Star was decided on 23rd Feb., 1999, the same was also not available on 4th Feb., 1999, when the assessee received the ground of appeal filed by the Department. 10. We have heard the parties at length on the condonation of delay. The sum and substance of the arguments of the learned counsel is that the delay should be condoned in the interest of justice. No injustice should be caused merely on grounds of technicalities. Certain decisions have been relied upon to support the contention. The learned Departmental R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, we may firstly refer to the decision of the Supreme Court in the case of Ramlal Ors. vs. Rawa Coal Fields Ltd. AIR 1962 SC 361. In this case, while dealing with s. 5 of the Limitation Act, 1908, at p. 363 of the report, the Court observed that the first consideration is that the expiration of the period of limitation prescribed for making an appeal gives rise to a right in favour of the decree-holder to treat the decree as binding between the parties. In other words, when the period of limitation prescribed has expired the decree-holding has obtained a benefit under the law of limitation to treat the decree as beyond challenge, and this legal right which has accrued to the decree-holder by lapse of time should not be light-hearted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads sufficient cause for not filing the appeal earlier, the sufficient cause must establish that because of some event or circumstances arising before limitation expired it was not possible to file the appeal within time. No event or circumstances arising after the expiry of limitation can constitute such sufficient cause. The Court further observed that there may be events or circumstances subsequent to the expiry of limitation which may further delay the filing of the appeal. But that the limitation has been allowed to expire without the appeal being filed must be traced to a cause arising within the period of limitation. In the present case, admittedly, the assessee was satisfied by the order of the CIT(A) not only till the limitation ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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