COMMISSIONER OF INCOME TAX, DELHI Vs. MEREENA CREATIONS

JUDGEMENT

(1.) THIS appeal was admitted on the following substantial questions of law :-

(2.) FOR answering the aforesaid questions, following facts need to be mentioned.

(3.) IN appeal preferred by the assessee, the Commissioner of Income Tax (Appeal), vide orders dated 16.2.2004, enhanced the income of the assessee holding that the assessee was not entitled to any deduction under Section 80HHC as profits of the business were in the negative and, thus, dismissed the appeal of the assessee. In further appeal preferred by the assessee before the Income Tax Appellate Tribunal (for short, the "Tribunal "), the assessee has triumphed as, vide impugned orders dated 1.9.2005, the appeal of the assessee has been allowed and the additions made by the AO deleted. In this backdrop, the aforesaid two questions have arisen relating to addition of interest income from FDRs and deduction under Section 80HHC.