Itxa/543/2008 Of The Commissioner Of Income Tax City 20, Mumbai v. M/S Choudhary Garments

AGK IN THE HIGH COURT OF JUDICATURE AT BOMBAY AGK ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.543 OF 2008 The Commissioner of Income-tax, City - 20, Mumbai ..Appellant. V/s. M/s.Choudhary Garments ..Respondent. Mr.R. Asokan for the Appellant. Mr.A.K. Jasani for the Respondent. CORAM : D.K. DESHMUKH & J.P. DEVADHAR, JJ. DATED : 14TH OCTOBER, 2008. P.C. : 1. The question of law raised in this appeal is whether the tribunal was justified in treating the interest on FDR as business income of the petitioner, so as to allow deduction under Section 80HHC of the Income Tax Act to the assessee which is a 100% EOU. According to the revenue, in the light of the decision of this Court in the case of CIT V/s. Ravi Ratna Exports Private Limited reported in 246 ITR 443, the interest on FDR cannot be treated as business income. 2. In the present case, on perusal of the assessment order it is seen that the interest on FDR has been in fact assessed as business income. That finding of the assessing officer has attained finality. Therefore, the decision of this Court in the case of Ravi Ratna Exports Private Limited (supra) has no application to the facts of the present case. Moreover, this Court in the case of CIT V/s. Punit Commercials Limited reported in 245 ITR 550 has held that the interest income received by 100% EOU pertaining to export business is a business income for the purpose of computing deduction under Section 80HHC of the Income Tax Act. 3. In this view of the matter, thee is no merit in the appeal and the same is dismissed. D.K. DESHMUKH, J. J.P. DEVADHAR, J.