Gujarat High Court
Commissioner Of Income Tax vs M/S. Raghuvir Synthetics ... on 26 February, 2014
Bench: Akil Kureshi, Sonia Gokani
O/TAXAP/25/2007 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX APPEAL No. 25 of 2007
With
TAX APPEAL No. 517 of 2007
To
TAX APPEAL No. 522 of 2007
================================================================
COMMISSIONER OF INCOME TAX....Appellant(s)
Versus
M/S. RAGHUVIR SYNTHETICS LTD.....Opponent(s)
================================================================
Appearance:
MR NITIN K MEHTA, ADVOCATE for the Appellant(s) No. 1
MS SALONI A PATEL, ADVOCATE for the Opponent(s) No. 1
================================================================
CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHI
and
HONOURABLE Ms. JUSTICE SONIA GOKANI
26th February 2014
COMMON ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI)
These Tax Appeals involve identical single question, which was framed as under : "Whether the Appellate Tribunal is right in law and on facts in holding that for the purpose of applying Explanation (baa) below subsection (4B) of Section 80HHC of the Incometax Act, while reducing 90% of the receipt by way of interest from the profit of business, it is only the 90% of the net interest remaining after allowing Page 1 of 2 O/TAXAP/25/2007 ORDER set off of interest paid, which has a nexus with the interest received, that can be reduced and not 90% of the gross receipt ?"
We notice that such question is answered against the Revenue by virtue of the judgment of the Supreme Court in case of ACG Associated Capsules Private Limited v. Commissioner of Income Tax, reported in [2012] 343 ITR 89 (SC).
All these Appeals are accordingly disposed of, answering the question against the Revenue.
{Akil Kureshi, J.} {Ms. Sonia Gokani, J.} Prakash* Page 2 of 2