9911796707
TMI Blog2016 (12) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... d the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal filed by the assessee. 2. The brief facts of the case are that the assessee is an exporter of precious stones. During the year, the assessee earned gross interest of ₹ 5,12,574/- and also made payment of interest of ₹ 5,00,395/-. The AO and the ld. CIT(A) held that there is no nexus between the business income and income from the interest. Therefore, they held that interest is to be assessed under head income from the sources. The ld. CIT(A) observed at page 2 of her order that the assessee did not borrow any money for business purposes during the year under consideration and the interest outgoings relate to the borrowings made in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in not deleting the interest under Section 234B and interest u/s.234C of the I.T. Act when there was no specific direction to charge interest in the assessment order dated 27.11.1996? 5. Whether on the facts and in the circumstances of the case, the ld. Tribunal was right in observing that interest u/s.244A cannot be withdrawn but in directing to rectify under Section 154 of the I.T. Act? 4. Counsel for the appellant contended that the issues No.1 to 3 are required to be decided together in view of the provisions Section 80HHC of the Income Tax Act, in explanation (baa) which reads as under: profits of the business means the profits of the business as computed under the head Profits and gains of business or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Whether therefore, ninety per cent of net gross rent of gross interest but only net interest or net rent, which has been included in profits of business of assessee as computed under head 'Profit and Gains of Business of Profession', is to be deducted under clause (1) of Explanation (baa) to section 80HHC for determining profits of business- Held, yes [In favour of assessee] 2. Section 80HHC, read with sections 28(iiid), of the Income Tax Act,1961- Deductions -Exporters- Assessment year 2003-04- Whether not entire amount received by assessee on sale of DEPB by assessee under section 28(iiid) for purpose of Explanation (baa) to section 80HHC- held, yes [In favour of assessee]. 6. Counsel for the department has relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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