Law:

Section:

[2008] 304 ITR 330 (BOM.) HIGH COURT OF BOMBAY Bombay Snuff Co. v. Commissioner of Income-tax J. P. DEVADHAR AND B. P. DHARMADHIKARI, JJ. IT APPEAL NOS. 17 AND 18 OF 2002 JUNE 12, 2007 Section 80HH of the Income-tax Act, 1961 - Deductions - Profits and gains from hotels or industrial undertakings etc., in backward areas Interest and remuneration paid to partners deductible under section 40(b) were liable to be excluded from the gross total income for the purpose of deduction under section 80HH. [A.Y. 1994-95 and 1997-98]. Where it was not in dispute that the amount of interest and salary paid to the partners was deductible under section 40(b) and in fact the assessee had claimed the deduction of the said amount and the same was allowed, interest and remuneration paid to the partners were liable to be excluded from the gross total income for the purpose of deduction under section 80HH. M. V. Samarth for the Appellant. A. S. Jaiswal for the Respondent. JUDGMENT Heard Mr. M. V. Samarth, learned counsel for the appellant and Mr. A. S. Jaiswal, learned counsel for the respondent. These two appeals are filed by the appellant/assessee against the common order of the Tribunal dated October 12, 2001, in I. T. A. Nos. 985 and 986/Nag/1996. The common question of law raised by the assessee in these appeals is : "Whether, on the facts and in the circumstances of the case, in view of the specific terms of the partnership deed in case of the partnership firm the deduction under section 80HH of the Income-tax Act, 1961, is to be allowed on gross total income before deducting the interest and remuneration to partner forming part of the business income being share income ?" The assessment year involved herein are 1997-98 and 1994-95 respectively. For the sake of convenience we set out the facts in Appeal No. 17 of 2002 relating to assessment year 1997-98. The assessee is engaged in the manufacture and sale of snuff. In the assessment year in question the assessee claimed deduction under section 80HH of the Act on the gross total income without reducing therefrom the interest and salary paid to the partners which was deductible under section 40(b) of the Income-tax Act, 1961.…

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