The Commissioner Of Income Tax -17 v. M/S. Synergy Fashions

1 ita5442.10.sxw IN THE HIGH COURT OF JDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 5442 OF 2010 The Commissioner of Income Tax -17 Vs. M/s. Synergy Fashions ..Appellant. .. Respondent. Mr. D.K. Kamwal for the Appellant. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATE : 11TH APRIL, 2011. P.C. 1.Heard. 2.None for the respondent, though served. Counsel for the Revenue undertakes to file affidavit of service within one week from today. 3.Admit on the following question of law. Whether on the facts and in the circumstances of the case and in law Hon'ble ITAT is justified in relying upon the ratio of decision in the case of M/s Lalsons Enterprises (85 ITD 25 (SB) and restoring the issue to the Assessing Officer with the direction that netting off of 'interest receipts' against 'interest payment' should be allowed if the assessee establishes the nexus between the two and only 90% of such net interest income should be excluded from the profit of the business for calculating deduction U/s. 80HHC, when the 'interest received' and 'interest paid' fall under different heads of income? 4.The aforesaid question is already answered in favour of revenue by the decision of this Court in the case of CIT Vs. Asian Star Ltd.reported in 326 ITR 56. Accordingly we answer the question in favour of the revenue and against the assessee and direct the assessing officer to follow the ratio laid down by this Court in the case of Asian Star (Supra). 5The Appeal is disposed of accordingly. ( A.A. SAYED, J. ) (J.P. DEVADHAR, J.)