COMMISSIONER OF INCOME TAX Vs. ANAND KUMAR

JUDGEMENT

(1.) "Whether the Tribunal was correct in law in holding that the assessee is entitled to reduce interest paid by it from the interest received by it, while calculating deduction under s. 80HHC(1) r/w Expln. (baa) of the IT Act, 1961 -

(2.) FROM the impugned order of the Tribunal it appears that the AO in the present case treated the interest income as business income but only disallowed netting. When the CIT(A) allowed netting of interest, the Revenue went in appeal before the Tribunal. It was correctly noted by the Tribunal that the AO having accepted the interest income as business income, the only question that required consideration was whether deduction should be of 90 per cent of the gross interest or net interest. This Court also confined the question of law only to this issue. Revenue and in favour of the assessee. The appeal is dismissed.