Law:

Section:

Section 80HH, read with section 80-I, of the Income-tax Act, 1961 - Deductions - Profits and gains from hotels or industrial undertakings, etc., in backward areas - Assessment year 1997-98 -Whether interest received on belated payments on account of sale to customers of manufactured goods can clearly be termed to be an income derived from industrial undertaking and distinct from income on account of interest received from fixed deposit and assessee is entitled for deduction under sections 80HH and 80-I in respect of said interest income - Held, yes CASES REFERRED TO Pandian Chemicals Ltd. v. CIT [2003] 262 ITR 278/ 129 Taxman 539 (SC) [Para 6] andCIT v. Paras Oil Extraction Ltd. [1998] 230 ITR 266/96 Taxman 234 (MP) [Para 6]. Pankaj Jain for the Appellant. Yogesh Putney for the Respondent. JUDGMENT Vijender Jain, CJ. - The assessee has preferred the present appeal against the order of the Income-tax Appellate Tribunal, Delhi Bench dated 30-11-2004 pertaining to the assessment year 1997-98. 2. The assessee, who is in the business of ginning and pressing of cotton, filed the return of income on 21-11-1997 at an amount of Rs. 8,63,500 for the assessment year 1997-98. The assessing authority disallowed the deduction under sections 80HH and 80-I of the Income-tax Act in respect of the amount of Rs. 2,76,009, which was claimed by the assessee as an income on account of interest and carrying charges, and treated it to be an income on account of interest on trade debtors and creditors against the regular business transactions of sale and purchase having been carried on and conducted by the assessee. 3. The assessing authority primarily disallowed the deductions on the ground that the interest and carrying charges is an income which has not been derived from the industrial undertaking and that such an activity can not be treated to be an essential part of the industrial undertaking. The Tribunal upheld the order of the assessing authority which has resulted in the present appeal having been filed before this Court raising the following substantial questions of law : "(a)Whether under the facts and circumstances of the case, the Tribunal is justified in disallowing the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492