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TMI Blog2014 (4) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... 0HHC (3) will automatically get reduced by the amount of the interest and the benefit of Section 80 HHC was applicable only in the case in which the interest income is assessed under the head “income from profit and gains of the business” – following Pandian Chemicals Vs. CIT [2003 (4) TMI 3 - SUPREME Court] – the interest derived by the industrial undertaking of the assessee on deposits made with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income tax on 29.11.1996 for the financial year 1996-97. It claimed deduction under Section 80 HHC of Income Tax Act 1961. The Assessing Officer disallowed the claim of amount of Rs.11,82,665/- being excess deduction with reference to the interest income of Rs.13,14,708/-. The officer allowed netting of interest. The assessee filed an appeal against the aforesaid order. The appellate au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the business tobe calculated for the purpose of deduction under Section 80HHC (3) will automatically get reduced by the amount of the interest and the benefit of Section 80 HHC was applicable only in the case in which the interest income is assessed under the head income from profit and gains of the business. The order passed by the Tribunal is based on the judgment passed by the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot profits or gains derived by the undertaking for the purpose of the special deduction under section 80HH. CIT vs. Raja Bahadur Kamakhya Narayan Sing [1948] 16 ITR 325 (PC) and Mrs. Bacha F. Guzdar vs. CIT (1995) 27 ITR 1 (SC) applied. CIT v. Pandian Chemicals Ltd. (1998) 233 ITR 497 (Mad) approved. Rules of interpretation would come into play only if there is any doubt with regard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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