The Commissioner Of Income Tax-Xiv v. M/S.texport Syndicate

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO. O. C. J. INCOME TAX APPEAL NO.523 OF 2008 The Commissioner of Income Tax-XIV. Vs. ...Appellant. M/s.Texport Syndicate. ...Respondent. .... Mr.D.K.Kamwal for the Appellant.Mr.S.J.Mehta for the Respondent. .....CORAM : DR.D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ. April 9, 2010. P.C. : The appeal by the Revenue has been admitted on the following substantial question of law: “ Whether the ITAT was right in law 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 A.O 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.” The Tribunal has, by its order dated 3[rd] July 2006, remanded the proceedings to the Assessing Officer to decide the issue afresh in view of the judgment of the Tribunal in Lalsons Enterprises, 85 ITD 25 and in Sakay Traders, 96 TTJ 451. In view of the law laid down by this Court in CIT vs. Asian Star Co.Ltd. (judgment delivered on 18th/19[th] March 2010 in Income Tax Appeal 200 of 2009), there shall be a direction to that effect that the Assessing Officer shall, on remand, reconsider the issue in terms of the law laid down by this Court. In the circumstances, it is not necessary to answer the question of law as framed. The appeal shall stand disposed of in the aforesaid terms. There shall be no order as to costs. ( Dr.D.Y.Chandrachud, J.) ( J.P.Devadhar, J.)