COMMISSIONER OF INCOME TAX Vs. TVS MOTORS LIMITED

JUDGEMENT

(1.) These two Tax Case (Appeals) filed by the Revenue arising out of the common order of the Income Tax Appellate Tribunal in the assessee's appeal as well as the Revenue's appeal were relating to the assessment year 2003-04. The following substantial questions of law are raised by the Revenue in both the Tax Case (Appeals):-

(2.) As far as the claim under Section 80HHC of the Act on the foreign exchange received on account of forward contract is concerned, the assessee contended that 80HHC did not distinguish interest income as related to the business or not related to business; further, the foreign exchange income received on account of forward contract and other miscellaneous income also come within the ambit of other receipts. However, the Assessing Officer rejected such contention holding that the Foreign Exchange received on account forward contracts come within the Explanation (baa) of Sub Section (iii) of Section 80HHC of the Act, hence, 90% of the above receipts were to be excluded for the purpose of eligible business profit of Section 80HHC of the Act.

(3.) As far as the claim on 100% depreciation on various items which included temporary parking shed is concerned, the Assessing Officer rejected the same and held that the depreciation applicable to Buildings at 10% would be allowed on the above claim.