2002 (10) TMI 90 - HC - Income Tax

Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in holding that interest on amount deposited as guarantee fund forms part of profit derived from the export business and should be included in the profit of the assessment for computing deductions under sections 80HH 80HHC and 80-I? . - The question referred to us is therefore answered partly in favour of the assessee i.e. in relation to the deduction under section 80HHC and partly in favour of the Revenue in so far as the deductions claimed under sections 80HH and 80-I are concerned.

Summary

The High Court of Madras ruled on the inclusion of interest on guarantee fund deposits in profit calculations for tax deductions under sections 80HH, 80HHC, and 80-I. The interest on bank deposits for import purposes was not considered derived from the industrial undertaking for sections 80HH and 80-I but was accepted for section 80HHC due to its inclusion in business profit calculations. The judgment favored the assessee for section 80HHC deduction but supported the Revenue for sections 80HH and 80-I deductions.