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K.S. Subbiah Pillai And Co. (India) Pvt. ... vs Commissioner Of Income-Tax on 9 September, 2002

On a plain reading of the provision, it is clear that what the provision stipulates is that "profits of the business" for the purpose of Section 80HHC of the Act mean the profits of the business as computed under the head "Profits and gains of business or profession". While computing such profits under the head "Profits and gains of business or profession", if any receipt by way of brokerage, commission interest, rent, charges or any other receipt of a similar nature (is) included in such profits, the same has to be reduced by 90 per cent from the profits computed as aforesaid. The deductions to be made are from the amount of profits so computed and not from the amount computed under any other head of income of that assessee. No reference of net interest mentioned in the said clause. What we have to see is only the nature of receipt as contemplated under the clause. No deduction is permissible. Once the receipt of the interest is known, 90 per cent of the same to be reduced from the profits without deducting any amount. This Court in the case of K.S. Subbiah Pilial and Co. (India) (P) Ltd. v. CIT , held as follows :
Madras High Court Cites 2 - Cited by 31 - R J Babu - Full Document
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