Nirma Industries Ltd. v. Dy. CIT
INCOME TAX ACT, 1961
Appeal (High Court) - Substantial question of law
Held: Effect of dismissal of tax appeal by High Court in view that no substantial question of law arose was that order of Tribunal on issue stands merged in order of High Court and for all intents and purposes it was decision of High Court which was operative and which was capable of being given effect to.
Income-tax Act, 1961, Section 260A
A.Y. :1992-93
INCOME TAX ACT, 1961
Deduction under section 80-I - Allowability -Interest received from trade debtors on late payment
Assessee-company claimed deduction under section 80-I. AO held while computing the amount allowable as deduction under section 80-I, sum being late payment interest received from debtors had to be excluded from the profits of the industrial undertaking on the ground of that late payment interest was received by assessee due to default of the customers and had nothing to do with industrial activity or the manufacturing activity of the assessee. That it was not an integral part of the profits of the industrial undertaking. Held:In computation of deduction under section 80-I, interest received by assessee from its trade debtors towards late payment of sale consideration was not required to be excluded from profits of industrial undertaking as same was income derived from business of industrial undertaking.
Income-tax Act, 1961, Section 80-I
A.Y. :1992-93
Decision: In favour of assessee.