COMMISSIONER OF INCOME TAX Vs. ADVANCE DETERGENTS LTD.

JUDGEMENT

(1.) THIS appeal was admitted and heard on the following substantial question of law: Whether the Tribunal was correct in law in holding that the interest earned by the assessee on late payment received from the customers is eligible for deduction under Section 80 -IA of the IT Act, 1961 ?

(2.) THIS question has arisen for consideration under the following circumstances:

(3.) ORDER of the AO was confirmed by the CIT(A). However, on further appeal preferred before the Tribunal, the appeal of the assessee has been allowed by the Tribunal by directing the AO to compute the deduction under Section 80 -IA of the Act and treating the aforesaid income as business income. The Tribunal, for arriving at this conclusion, has referred to various judgments of different High Courts and different Benches of the Tribunal itself.