2002 (4) TMI 215

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..... raised by the Department in this appeal, reads as under: "1. That on the facts and in the circumstances of the case, the learned CIT(A) has erred in directing the AO to recompute the deduction under s. 80HHC after including the interest of Rs. 1,63,800 on FDRs with business income of the assessee." 3. In C.O. the assessee has taken following grounds: "1. The CIT(A) has rightly directed t .....

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..... er: "8. The interpretation given by the learned CIT(A) to s. 80HHC is in accordance with the interpretation given by the CBDT, who clarified in Circular No. 564, dt. 5th July, 1990, as reproduced in (1990) 184 ITR 137 (St). This is also amply clear from the fact that s. 80HHC was amended by Finance Act (No. 2) Act, 1991, by inserting Expln. (baa) w.e.f. 1st April, 1982, which is held to be appl .....

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..... essee and against the Revenue. The judgment is reported in the case of CIT vs. Isher Dass Mahajan Sons (2001) 170 CTR (P H) 271 : (2002) 253 ITR 284 (P H), wherein it has been held that: "The addition of cl. (baa) to the Explanation to s. 80HHC of the IT Act, 1961, is indicative of the legislative intent to exclude income on account of interest and rent, etc. from the benefit under s. 80HHC o .....

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