Cit vs Anand Kumar
2007 Latest Caselaw 131 Del

ORDER

1. This appeal was admitted on 1 -11 -2004 and the following sole substan- tial question of law was framed:

Whether the Income Tax Appellate Tribunal was correct in lav/ in holding that the assessed is entitled to reduce interest paid by it from the interest received by it, while calculating deduction under Section 80HHC( 1) read with Explanation (baa) of the Income Tax Act, 1961?

2. From the impugned order of the ITAT it appears that the AssessingOfficer in the present case treated the interest income as business income but only disallowed netting. When the Commissioner (Appeals) allowed netting of interest, the revenue went in appeal before the ITAT. It was correctly noted by the ITAT that the assessing officer having accepted the interest income as business income, the only question that required consideration was whether deduction should be of 90 per cent of the gross interest or net interest. This Court also confined the question of law only to this issue.

3. In view of our judgment rendered on 12-1-2007, the question is answered in the affirmative i.e., against the revenue and in favor of the assessed.

4. The appeal is dismissed.