COMMISSIONER OF INCOME TAX Vs. EVELINE INTERNATIONAL

JUDGEMENT

(1.) THE Revenue has preferred this appeal under s. 260A of the IT Act, 1961 (for short, "the Act") against the order of the 04.

(2.) THE assessee claimed for deduction under s 80HHC of the Act by including premium earned by sale of export incentive. Further claim was for interest income as business income after reducing the same by 90 per cent under Expln. (baa) to s. 80HHC of the Act. The said claim having not been allowed, the assessee preferred an appeal. The CIT(A) allowed the claim of the assessee, which was upheld by the Tribunal by following its order in the case of the assessee for Revenue, the Tribunal affirmed the said view with the following observations with regard to the issue of interest, which reasoning also applies for income from sale of export incentive :

(3.) IT could not be disputed that the above view flows from bare reading of the statutory provision in Expln. (baa) to s. 80HHC of the Act. No substantial question of law arises for consideration.