9911796707
TMI Blog2014 (7) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... st income which was generated from the deposits held in the EEFC account would not fall for classification as income under the head of business and profession but would fall for classification as income from other sources - Decision in the case of Shah Originals [2010 (4) TMI 216 - BOMBAY HIGH COURT] followed – Decided against assessee. - Income Tax Appeal No. 257 of 2012 - - - Dated:- 11-6-2014 - S. C. Dharmadhikari And B. P. Colabawalla,JJ. For the Appellant : Mr. Nishit Gandhi i/b. Sameer G. Dalal ORDER P. C. 1] This appeal is directed against the order of the Income Tax Appellate Tribunal dated 29th July, 2011 in Income Tax Appeal No.7523/MUM/2007. The assessment year in question is 199798. 2] The appellant befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Commissioner of Income Tax V/s. Rachna Udhyog in Income Tax Appeal No.2394 of 2009 decided on 13th January, 2010. 5] We are unable to agree with the learned counsel appearing for the assessee in support of this appeal that the same raises any substantial question of law. The concurrent findings of fact is that the claim under Section 80HHC was regarding interest. That was stated to be earned by the assessee from the EEFC account amounting to Rs.67,80,738/. Implicit and inherent in the submission of learned counsel appearing for the assessee is the fact that this amount, termed as interest is pending the utilization of the said Account for the purpose of export. That was not any receipt or income derived from export and which was deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ike interest, will not attract explanation (baa). The Division Bench rendering the judgment in the later case namely Shah Originals found that the assessee admittedly received the entire proceeds of the export transaction. The proceeds of the EEFC account are to be utilized for bona fide payments by the account holder subject to the limits and the conditions prescribed. It is in these circumstances, that the interest which had arisen as a result of the deposits maintained in the EEFC account, cannot be regarded as representing the business income of the assessee. The business of the assessee consists of manufacture and export of garments. The interest income which was generated from the deposits held in the EEFC account would not fall for c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
