2010 (10) TMI 1102 - HC - Income Tax

Summary

Issues involved: Interpretation of deduction under section 80O of the Income Tax Act, 1961.

Summary:
The High Court of Bombay considered the appeal regarding the deduction under section 80O of the Income Tax Act, 1961. The Tribunal had determined the deduction under section 80O to be a specific sum, which was not disputed. The question raised was whether the admissible deduction under section 80O should be limited to the business income only, excluding income from interest and dividend. The Court referred to the definition of "gross total income" under section 80B(5) of the Act, which includes all income before any deductions. The Court held that interest income and dividend income are part of the gross total income as per the Act's provisions. Therefore, the Tribunal's decision was deemed appropriate, and no substantial question of law was found. Consequently, the appeal was dismissed with no order as to costs.