9911796707
TMI Blog2005 (11) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... le calculating the deduction under section 80HHD." The relevant facts, briefly stated, are that the assessee is entitled to deduction under section 80HHD of the Income-tax Act. The Assessing Officer computed allowable deduction in the following manner: ---------------------------------------------------------- Particulars Amount (Rs.) Amount (Rs.) ---------------------------------------------------------- Total Turnover 64,34,23,313 Foreign Exchange earnings 28,53,58,302 Total assessed business income 8,81,96,788 (Less) Interest income 19,92,561 Assessed business income for the purposes of deduction under section 80HHD 8,62,04,227 Assessed business income X foreign exchange earnings Deduction = ------------------------------------ unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertible foreign exchange nor it is for the services provided to foreign tourists. It is, therefore, contended that interest income has to be ignored while computing deduction under section 80HHD. He relied on the following cases: (i) CIT v. Ravi Ratna Exports (P.) Ltd. [2000] 246 ITR 443 (Bom.) (ii) CIT v. Kantilal Chhotalal [2000] 246 ITR 439 (Bom.) (iii) CIT v. Gimpex (P.) Ltd. [2004] 268 ITR 377 (Mad.) (iv) Pandian Chemical Ltd. v. CIT [2003] 262 ITR 278 (SC) (v) Asstt. CIT v. Nirma Industries Ltd. [2005] 95 ITD 199 (Ahd.) (SB) The ld. counsel appearing on behalf of the assessee strongly supported the order of the ld. CIT(A) and contended that for the purposes of determining the income which is allowable for deduction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipts in relation to which are received in or brought into India by the assessee in convertible foreign exchange within a period of six months from the end of the previous q year or within such further period as the competent authority may allow in this behalf. The modality of determining of the relevant profit described under sub-section (3) reads as under: "(3) For the purposes of sub-section (1), profits derived from services provided to foreign tourists shall be the amount which bears to the profits of the business (as computed under the head 'Profits and gains of business or profession') the same proportion as the receipts specified in sub-section (2) as reduced by any payment, referred to in sub-section (2A), made by the assessee bea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m delayed payment on sale proceeds and interest on deposits with banks and other companies is not in the nature of income derived from the industrial undertaking for the purposes of allowing deduction under section 80-I of the Act. In our view, the cases relied upon by the ld. DR are not relevant for deciding the issue which is the subject-matter of this appeal. As mentioned above, the interest income has already been brought to the charge of income-tax by the Assessing Officer as business income. There is no finding that such interest income is assessable as 'income from other sources' and not as 'business income' and therefore, this is a settled issue, which is not further disputed in appeal by either of the parties. Therefore, the point ..... X X X X Extracts X X X X X X X X Extracts X X X X
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