COMMISSIONER OF INCOME TAX Vs. RAJESH RAKHEJA
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX
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(1.) THE matter has been called out twice but there is no appearance on behalf of the assessee.
he following substantial questions of law are framed for consideration :
Whether the interest earned by the assessee on fixed deposit receipts should be assessed under the head 'Business income' or 'Income from other sources' -
(2.) WHETHER the Tribunal was correct in law in holding that only 90 per cent of the interest is to be excluded from the profits of the business as per Expln. (baa) to s. 80HHC of the IT Act, 1961, even if the interest is assessed under the
head 'Income from other sources' -
2. Filing of paper books is dispensed with and the appeal is heard finally.
(3.) LEARNED counsel for the Revenue has drawn our attention to the judgment of this Court in CIT vs. Shri Ram Honda Power Equip (2007) 207 CTR (Del) 689 : (2007) 289 ITR 475 (Del). On a perusal of the said decision, we are of the
opinion that the above questions are covered by it.
The income earned by the assessee from FDRs is required to be assessed as income from other sources. The said
income is therefore outside the purview of s. 80HHC of the Act and 100 per cent of the interest is required to be
excluded from the profits of the business in terms of Expln. (baa) to s. 80HHC of the Act.
The order passed by the Tribunal is accordingly set aside. The appeal is allowed.;
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