As per section 80 IC it is the net interest to be excluded from the eligible profit for calculation of deduction

Last updated: 20 July 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the case are that search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted on 10.5.2007 in M/s. U. Flex Ltd., Group of cases. The assessee was also covered under the search operation. In order to give logical end to the search proceedings, a notice under sec. 153A of the Act was issued upon the assessee on 9.5.2008. In response to the notice, it was contended by the assessee that the return filed originally be treated as filed in response to this notice. Learned Assessing Officer has observed that assessee company is primarily engaged in growing and processing of mushroom, culinary herbs and other fruits and vegetables. It has declared turnover of Rs.23.81 crores. It has shown business income of Rs.2.95 crores and claimed deduction under sec. 80-IC of the Act. While analyzing the assessee’s claim for deduction under sec. 80- IC, learned Assessing Officer found that it contained interest income of Rs.48,41,738 which does not qualify for grant of deduction under sec. 80-IC. Learned Assessing Officer excluded this amount from the eligible profit for the purpose of computation of deduction

Citation :
Flex Foods Ltd., 305, 3rd Floor, Bhanot Corner, Pamposh Enclave, Gr. Kailash-I, New Delhi (PAN: AAACF0108K)(Appellant) Vs. Deputy CIT, Central Circle 18,New Delhi. (Respondent)