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TMI Blog2002 (8) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... Judge(s) : S. SANKARASUBBAN., K. PADMANABHAN NAIR. JUDGMENT The judgment of the court was delivered by S. SANKARASUBBAN J.-Income tax Appeal No. 91 of 1999 is filed by the Revenue while I. T. A. No. 150 of 2000 is filed by the assessee. Both these appeals are filed challenging the order passed by the Income-tax Appellate Tribunal, Cochin Bench, in I. T. A. No. 607/Coch. of 1995. The relevant assessment year is 1991-92. The facts of the case are as follows: The assessee is a partnership firm engaged in export of marine products. The assessee filed a return of income for the assessment year 1991-92 on March 27, 1992, declaring taxable income of Rs. 19,800 which was processed under section 143(1)(a) of the Income-tax Act (hereinaf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed under section 143(3) of the Act, notice under section 148 of the Act cannot be issued. This contention was negatived. So also, the appellate authority negatived the contention with regard to two amounts which were decided by the Assessing Officer. Against the order of the appellate authority, the assessee preferred appeal before the Income-tax Appellate Tribunal. The preliminary objection to the assessment was rejected. So also, the Appellate Tribunal rejected the contention regarding the two amounts, namely, Rs. 11,10,377 and Rs. 15,23,037. The Tribunal accepted the two other contentions of the assessee. The first contention was that the Assessing Officer was not correct in denying proportionate deduction under section 80HHC of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exchange earned by the appellant?" The first question for consideration is whether the assessment was valid. The contention taken by the assessee is as follows: Section 143(1)(a) of the Act provides the procedure regarding assessment. Under section 143(1)(a) of the Act, the officer can, after being satisfied about the return, send an intimation. This intimation shall be deemed to be a notice of demand issued under section 156. The intimation may be either that the amount is due as per the return filed by the assessee or that refund is due to the assessee. In this case there was no proceeding under section 143(2) or (3). The return was processed under section 143(1)(a) of the Act. Then notice was issued under section 148 and finally, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d been issued." We agree with the above reasoning and hold that the assessment is valid. The next question for consideration is whether the amount derived as interest of Rs. 15,23,037 is to be treated as business income or not. The Tribunal held that it cannot be included as business income or profit under section 80HHC of the Act. Deduction is allowable only on the profit derived by the assessee from the export of specified goods and merchandise. Income from deposits cannot be deemed to be profit of exports. In CIT v. lose Thomas [2002] 253 ITR 553 (Ker), it has been held that interest on bank deposits does not constitute business income for the purpose of section 80HHC of the Act. We agree with the above decision and hold that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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