- (1.) THE Revenue has preferred this appeal under s. 260A of the IT Act, 1961 (for short, "the Act") against the order of the 04.
(2.) THE assessee claimed for deduction under s 80HHC of the Act by including premium earned by sale of export incentive. Further claim was for interest income as business income after reducing the same by 90 per cent under Expln. (baa) to s. 80HHC of the Act. The said claim having not been allowed, the assessee preferred an appeal. The CIT(A) allowed the claim of the assessee, which was upheld by the Tribunal by following its order in the case of the assessee for Revenue, the Tribunal affirmed the said view with the following observations with regard to the issue of interest, which reasoning also applies for income from sale of export incentive : "5.2 As regard to the contention of learned senior Departmental Representative for the Revenue that a finding should be given that the interest income earned by the assessee was income from other sources and not as business income, we are of the view that this issue is not arising out of the impugned order. Moreover, while deciding the Departmental appeal for the immediately proceeding (sic -preceding) year in assessee's own case, the Tribunal has observed at page business income of the assessee, 90 per cent of the same has to be excluded from the computation of business profit under s. 80HHC in view of cl. (baa) to sub -s. (4c) of s. 80HHC. We, therefore, are of the opinion that it was not an issue before the learned CIT(A) that the income earned by the assessee was business income or the income from other while computing the deduction under s. 80HHC of IT Act. Therefore, the contention of the learned senior Departmental Representative for the Revenue is not tenable."
(3.) IT could not be disputed that the above view flows from bare reading of the statutory provision in Expln. (baa) to s. 80HHC of the Act. No substantial question of law arises for consideration. The appeal is dismissed.;