2006 (7) TMI 151

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..... e against the order dated April 23, 2004, passed by the Income-tax Appellate Tribunal, New Delhi (for short, lithe Tribunal"), in M. A. No. 165/Del/2003 in I. T. A. No. 5317 (Del) of 1994, for the assessment year 1992-93 raising the following substantial question of law: "Whether, on the facts and the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in directing the .....

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..... the gross interest received is to be reduced out of the profit of business or the net interest. The relevant Explanation is extracted below: "Explanation.-For the purpose of this section,-.... (baa) 'profits of the business' means the profits of the business as computed under the head 'Profits and gains of business or profession' as reduced by (1) ninety per cent. of any sum referred to in cl .....

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..... assessee, against the order of the Revenue in the case of Rani Paliwal [2004] 268 ITR 220, held that it is the gross interest which is to be taken into consideration for reduction of 90 per cent. thereof for arriving at the profit of the business, in terms of Explanation (baa) to sub-section (4C) of section 80HHC of the Act. Though in Rani Paliwal's case [2004] 268 ITR 220 (P & H), the Tribunal ha .....

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