2010 (8) TMI 97

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..... leading that there was no debit balance in the interest account after netting of the interest. The AO did not allow the netting of the interest. The court decided in favour of the department, against the assessee.
CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL Mr. R.P. Sawhney, Senior Advocate with Mr. Baljinder Singh Sra, Advocate for the appellant. ADAR .....

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..... on under Section 80HHC of the Act, the assessee included the benefit of netting of interest which was not allowed by the Assessing Officer. Though the CIT (A) upheld the plea of the assessee, the Tribunal following the judgment of this Court in Rani Paliwal v. CIT [2004] 268 ITR 220 (P&H) held that the benefit of netting interest was not permissible as the said benefit was not related to export in .....

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..... /s 80HHC. However, on appeal the issue was decided in favour of the assessee. The Hon'ble Jurisdictional High Court in the case of Rani Paliwal (supra) uphold the stand of the Tribunal by deciding that special deduction u/s 80HHC, 90% of the interest is deductible from the gross interest received by the assessee." 5. Learned counsel for the appellant does not dispute that the matter is covered .....

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