2009 (2) TMI 412 - HC - Income Tax

Export-Special Deduction- The assessee was an exporter of silk and claimed special deduction under section 80HHC of the Act inter alia in respect of interest. The Tribunal held that the interest earned by the assessee on loans, interest from bank and the income on booking of cars and other income, the details of which were mentioned in the account was interest earned by assessee by investing the surplus funds and arose on account of business carried on by the assesseee and the business was authorized by clause 18 of the object clause of the memorandum and article of association of the assessee. Held that- there is no substantial question of law raised, thus appeal has dismissed.

Summary

The High Court of Calcutta, in a judgment by Pinaki Chandra Ghose and Sankar Prasad Mitra JJ, considered an application for condonation of delay in filing an appeal for the assessment year 1996-97. The appeal concerned the treatment of interest income as business income under section 80HHC of the Income-tax Act, 1961. The assessee, an exporter of silk fabrics, received interest on loans and advances, as well as interest from a bank (short-term deposit). The Commissioner of Income-tax (Appeals) directed the Assessing Officer to treat the interest income as business income and recalculate the deduction under section 80HHC. The Tribunal, citing a Supreme Court decision, upheld the Commissioner's order, concluding that the interest income was related to the assessee's business and therefore assessable as "Business income." The High Court found no substantial question of law and dismissed the appeal. An urgent certified copy of the order was to be supplied to the parties upon request. The judgment was cited as 2009 (2) TMI 412 - Calcutta High Court.