9911796707
TMI Blog2007 (6) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 by the assessee, against the order of the Income Tax Appellate Tribunal, Bench "B", Chennai in I.T.A. No.1546/Mds/2005 dated 28.09.2006 raising the following substantial question of law:- "Whether the Tribunal was right in holding that the interest payment is not allowable under Sec.57 of the Income-tax Act?" 2. The facts leading to the above substantial question of law are as under : The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hence the expenditure has to be allowed as deduction from the interest income. The Assessing Officer also rejected the method of computation of income. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The C.I.T.(A) allowed the appeal. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("Tribunal" in short) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The details regarding the other income of Rs.16,82,777/- are as follows:- (a) Exchange Fluctuation Gains : (b) Interest on Deposits : Rs.9,47,568/- Rs.7,35,209/- 6. The Assessing Officer held that the interest on bank deposit does not qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of interest payments "A" 0.08 Interest on Bank Fixed Deposits 7,35,209 Average balance of Bank FD 82,27,267 Rate of interest receipts "B" 0.09 Profit margin (B-A) 0.01 Profit on finance activities Average balance of bank FD x Profit margin = 82,27,267 x 1.31 = 1,07,777 7. On the above basis, the assessee contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rces", which has already been debited to Profit and Loss Account. 8. Under these circumstances, we are of the view that the order passed by the Tribunal is in accordance with law and the same does not require interference. Hence, no substantial question of law arises for consideration of this Court and accordingly, the tax case is dismissed. No costs. & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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