ACG Associated Capsules (P) Ltd. v. CIT

343 ITR 89Supreme Court of India2012#703 most cited

What is ACG Associated Capsules (P) Ltd. v. CIT authority for?

For calculation of deduction under Section 80HHC, if total interest is netted off after adjusting interest paid and received, the 90% reduction specified in Explanation (baa) is not applicable.

144

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2012 to 2025.

Also referred to as

ACG Associated Capsules · Section 80HHC · Explanation (baa) · 90% reduction · interest income · netting off interest · profits of business · deduction calculation · gross interest · net interest · 343 ITR 89

Also reported as

247 CTR 372

Sections most often in play

Section 115JASection 80HHCSection 80IBSection 143(3)Section 250Section 30Section 37(1)Section 44D
Read the full judgment

Issues it is cited on

section 80hsection 80hhcsection 80hhdeduction under section 80iasection 80iaeligible businesssection 80isection 30profits and gains of business or professionbook profitssection 115jrevenue expenditure

Judgments citing ACG Associated Capsules (P) Ltd. v. CIT

DCIT, New Delhi vs. M/S. Ultimate Flexible Ltd, New Delhi

ITA 2782/DEL/2009[2006-07]Status: DisposedITAT Delhi20 Mar 2019AY 2006-07

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…yment both have direct nexus with the know-how agreement. For this purpose, the Ld. AR relied upon the following judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003.…

Ultimate Flexipack Ltd., New Delhi vs. DCIT, New Delhi

ITA 2199/DEL/2009[2006-07]Status: DisposedITAT Delhi20 Mar 2019AY 2006-07

Bench: Shri R. K. Panda & Ms Suchitra Kamble & Ultimate Flexipack Ltd. Vs Dcit 305, 3Rd Floor, Bhanot Corner, Central Circle-18 Pamposh Enclave, Greater Kailash-1 Ara Centre,E-2, Jhandewalan New Delhi Aaacu6565D New Delhi (Appellant) (Respondent) Dcit Vs Ultimate Flexipack Ltd. Central Circle-18 305, 3Rd Floor, Bhanot Corner, Ara Centre, E-2, Jhandewalan Pamposh Enclave, Greater New Delhi Kailash-1 New Delhi Aaacu6565D (Appellant) (Respondent)

Section 115JSection 80Section 80I

…yment both have direct nexus with the know-how agreement. For this purpose, the Ld. AR relied upon the following judgments wherein the principle of netting has been approved: i) CIT vs. Nirma Ltd. 367 ITR 12 (Guj) ii) ACG Associated Capsules Pvt. Ltd. vs. CIT 343 ITR 89 (SC) iii) CIT vs. Sri Ram Honda Power Equip 289 ITR 475 (Del) iv) Keshavji Ravji and Co. vs. CIT 183 ITR 1 (SC) The Ld. AR further submitted that identical additional grounds were also raised before the Tribunal in A.Y. 2004-05 and the principle of netting has been accepted by the Tribunal vide its order dated 12.07.2018 in ITA No. 795/Del/2003.…

Shefali Ghosh, Kolkata vs. ACIT, Circle - 43, Kolkata

Appeal is partly allowed for statistical purpose in above terms

ITA 1810/KOL/2018[2004-05]Status: DisposedITAT Kolkata28 Feb 2019AY 2004-05

Bench: Hon’Ble Shri S.S. Godara, Jm] I.T.A No.1810/Kol/2018 Assessment Year : 2004-05 Smt. Shefali Ghosh Vs. A.C.I.T, Cir-43, Kolkata Pan: Adtpg6963A (Appellant) (Respondent) For The Appellant : Shri Subash Agarwal, Advocate, Ld.Ar For The Respondent : Shri C.J. Singh, Jcit, Ld.Sr.Dr

For Appellant: Shri Subash Agarwal, Advocate, ld.ARFor Respondent: Shri C.J. Singh, JCIT, ld.Sr.DR
Section 143(3)Section 28Section 33ASection 80H

…ument during the course of hearing is that the lower authorities ought to have adopted netting principle regarding the interest amount in issue. I find hon’ble Gujarat high court’s decision in CIT Vs. 2015 367 ITR 12 as well as in apex court’s judgment in 201 343 ITR 89 (SC) in ACG Capsules V/s CIT settle the law that netting principle has to be adopted in such an issue. I therefore direct the Assessing Officer to frame a fresh computation by adopting netting formula. 6. The assessee is very fair in not pressing third substantive ground seeking to delete vehicle expenses and depreciation disallowance amounting t…

Raymon Patel Gelatine Pvt.Ltd., Baroda vs. The ACIT., Circle-4, Baroda

In the result, the appeal is partly allowed in the terms indicated above

ITA 806/AHD/2012[2004-05]Status: DisposedITAT Ahmedabad29 Jan 2019AY 2004-05
Section 143(3)Section 36(1)(iii)

…ned, learned representatives fairly agree that this issue is required to be restored to the file of the Assessing Officer for fresh adjudication with the benefit of direct decisions from Hon’ble Supreme Court in the case of ACG Associated Capsules Ltd Vs CIT (343 ITR 89) and Topman Exports Vs CIT (342 ITR 49). That is precisely what was done by the Tribunal in the earlier assessment years. We accept the plea and remit the matter to the file of the Assessing Officer for fresh adjudication as such. Ordered, accordingly. 20. Ground no. 6 is thus allowed for statistical purposes in the terms indicated above. 21. In…

Maheshraj Chemicals Pvt.Ltd., Ahmedabad vs. The Dy.CIT., Circle-4, Ahmedabad

In the result the appeal of the assessee is partly allowed

ITA 791/AHD/2012[1999-00]Status: DisposedITAT Ahmedabad06 Dec 2018AY 1999-00

Bench: Shri Waseem Ahmed & Madhumita Royआयकर अपील सं./Ita No.791/Ahd/2012 िनधा"रण वष"/Asstt. Year: 1999-2000 Dcit, Mahesraj Chemicals Pvt. Ltd. Circle-4, Vs. 141, Phase Ii, Gidc, Vatva, Ahmedabad Ahmedabad-382330 Pan:Aabcm0424C

For Appellant: Smt Urvashi Shodhan, ARFor Respondent: Shri Vinod Talwani, Sr.DR
Section 234BSection 271Section 28Section 36Section 80H

…rofit while computing deduction u/s 80HHC of the Act. Alternatively 90% of only net interest ought to be reduced from business profits for computing deduction u/s 80HHC of the Act. as held by the Hon'ble Apex Court in ACG Associated Capsules Pvt. Ltd. vs CIT (247 CTR 372). 4. Ld. CIT (A) erred in law and on facts in confirming disallowance of interest of Rs. 3, 99, 847/- from interest expenses claimed u/s 36(l)(iii) of the Act holding that interest bearing funds were utilized for making interest free deposits. Ld. CIT (A) erred in not appreciating that the appellant advanced interest free deposits from total inte…

Vardhman Holdings Ltd., Ludhiana vs. ACIT

The appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 88/CHANDI/2009[2003-04]Status: DisposedITAT Chandigarh26 Nov 2018AY 2003-04
For Appellant: Shri Subhash Aggarwal, AdvFor Respondent: Shri Jagdish Goyal, CIT DR
Section 10BSection 143(3)Section 250(6)Section 80HSection 80I

…to be reduced from the profits of the assessee for the purpose calculating the deduction allowable to the assessee u/s 80HHC of the Act. Reliance was placed on the following decisions in this regard: 1) M/s ACG Associated Capsules Pvt. Ltd. Vs. CIT (2012) 343 ITR 89 2) Vardhman Holding Ltd. Vs. ACIT, ITA No. 280/Chd/2008 dated 28.12.2012 for Assessment year 2001-02. 26. It was further pointed out that identical issue had been dealt with in the case of sister concern of the assessee M/s Vardhman Textiles (supra) wherein netting of interest was allowed. Our attention was drawn to the relevant discussion on th…

ACIT, Ludhiana vs. M/S Vardhman Holdings Ltd., Ludhiana

The appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 118/CHANDI/2009[2003-04]Status: DisposedITAT Chandigarh26 Nov 2018AY 2003-04
For Appellant: Shri Subhash Aggarwal, AdvFor Respondent: Shri Jagdish Goyal, CIT DR
Section 10BSection 143(3)Section 250(6)Section 80HSection 80I

…to be reduced from the profits of the assessee for the purpose calculating the deduction allowable to the assessee u/s 80HHC of the Act. Reliance was placed on the following decisions in this regard: 1) M/s ACG Associated Capsules Pvt. Ltd. Vs. CIT (2012) 343 ITR 89 2) Vardhman Holding Ltd. Vs. ACIT, ITA No. 280/Chd/2008 dated 28.12.2012 for Assessment year 2001-02. 26. It was further pointed out that identical issue had been dealt with in the case of sister concern of the assessee M/s Vardhman Textiles (supra) wherein netting of interest was allowed. Our attention was drawn to the relevant discussion on th…

M/S Kaypee Exporters vs. The Asst. Commissioner

The appeals are disposed off accordingly

ITA/3/2010HC Karnataka22 Nov 2018

Bench: The Hon'Ble Mr. Justice Ravi Malimath

Section 143(3)Section 260Section 40Section 80H

…terest income is to be considered under the head ‘income from other sources’. To this effect, he also relies on the judgment in the case of M/S. A.C.G. ASSOCIAED CAPSULES PVT. LTD. v. THE COMMISSIONER OF INCOME TAX, CENTRAL-IV, MUMBAI reported in [2012] 343 ITR 89. 10. Therefore, we are of the view that these are questions of fact with regard to whether the interest earned on deposits is to be considered as a 10 ‘business income’ or ‘income from other sources’ which would have to be specifically answered by the Assessing Officer and a specific finding would have to be recorded by…

M/S. K Kalpana Infrastructures Ltd., Kolkata vs. Pr.CIT, Central - 1, Kolkata

Appeal is allowed

ITA 814/KOL/2018[2013-14]Status: DisposedITAT Kolkata06 Nov 2018AY 2013-14

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godaraassessment Year:2013-14

Section 143(3)Section 263Section 80

…egal proposition that it is only the net of interest income and expenditure instead of the former component only that has to be excluded for the purpose of computing sec 80IB deduction. Various judicial precedents ACG Associated Capsules P. Ltd. v. CIT (2012) 343 ITR 89 (SC) and CIT vs. Shri Ram Honda Power Equip (2007) ITR 475 (Del) answer the very question in assessee’s favour. Hon'ble Gujarat high court’s ITA No.814/Kol/2018 A.Y. 2013-14 M/s Kkalpana Industries (I) Ltd. Vs. Pr. CIT, Central-1, Kol. Page 8 judgment in CIT vs. Nirma Ltd. (2014) 367 ITR 12 (Guj) makes it clear that although the former foregoing…

ACIT, Gurgaon vs. M/S. Motorola India Pvt. Ltd., Gurgaon

In the result, appeal filed by the revenue is dismissed

ITA 4581/DEL/2011[2004-05]Status: DisposedITAT Delhi24 Aug 2018AY 2004-05

Bench: Smt Diva Singh & Shri Prashant Maharishimotorola India Pvt Ltd, Vs. Acit, Motorola Excellence Centre, Gurgaon Circle, 415/2, Sector-14, Mg Road, Gurgaon Gurgaon, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Acit, Vs. Motorola India Pvt Ltd, Gurgaon Circle, Motorola Excellence Centre, Gurgaon 415/2, Sector-14, Mg Road, Gurgaon, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Motorola Solutions India (P) Ltd, Vs. Acit, 415/2, Motorola Excellence Gurgaon Circle, Centre, Mg Road, Haryana Gurgaon Pan: Aaacm9343D (Appellant) (Respondent) Acit, Vs. Motorola Solutions India (P) Gurgaon Circle, Ltd, Gurgaon 415/2, Motorola Excellence Centre, Mg Road, Haryana Pan: Aaacm9343D (Appellant) (Respondent) Assessee By : Shri G.C. Srivastava, Adv Shri Suvinay K. Dash, Adv Revenue By: Shri Sanjay I Bara, Cit Dr Date Of Hearing 28/05/2018 Date Of Pronouncement 24/08/2018

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Sanjay I Bara, CIT DR
Section 37Section 43BSection 80HSection 92C

…essing officer was upheld by him. 30. The learned authorized representative submitted before us that the issue is now squarely covered in favour of the assessee by the decision of the Hon’ble Supreme Court in case of ASG associated capsules (P) Ltd versus CIT 343 ITR 89 as well as the decision of the Hon’ble Delhi High Court in case of CIT versus Rama Honda Power equip and others 289 ITR 475. He further submitted that the issue is now also considered by the Hon’ble Supreme Court in case of liberty footwear company versus CIT 67 taxmann.com 55 (SC) 31. The learned departmental representative payment relied upon th…

Orbis Foundation, Gurgaon vs. ITO, Ward- 3(1), Gurgaon

In the result, the appeal filed by the assessee is partly allowed

ITA 2637/DEL/2018[2013-14]Status: DisposedITAT Delhi14 Aug 2018AY 2013-14

Bench: Shri N.K. Billaiya & Shri K.N. Chary[Assessment Year: 2013-14] M/S Orbis Foundation Vs. The I.T.O 402, Beverly Park I Ward -3(1) M.G. Road, Dlf City Gurgaon Gurgaon, Haryana Pan : Aaato 2965 N [Appellant] [Respondent] Date Of Hearing : 13.08.2018 Date Of Pronouncement : 14.08.2018

For Appellant: Shri Hiren Mehta, CAFor Respondent: Shri Ravi Kant Gupta, Sr. DR
Section 12ASection 57

…terest. It is the say of the ld. AR that what is taxed under the head ‘income from other sources’ is the net interest. For this proposition, strong reliance was placed on the judgment of the Hon'ble Supreme Court in the case of ACG Associated Capsules [P] Ltd 343 ITR 89. Reliance was also placed on the judgment of the Hon'ble Punjab and Haryana High Court in the case of Maruti Employees Cooperative House Building Society Ltd.320 ITR 254. 8. Per contra, the ld. DR strongly supported the findings of the AO. It is the say of the ld. DR that there is no nexus between the interest expenditure and earning of interest o…

Sci Forbes Ltd, Mumbai vs. ITO 5(3)(2), Mumbai

In the result, assessee’s appeal is dismissed

ITA 6348/MUM/2013[2010-11]Status: DisposedITAT Mumbai15 May 2018AY 2010-11

Bench: Shri Joginder Singh & Shri Manoj Kumar Aggarwalassessment Year: 2010-11 Shapoorji Pallonji Forbes Income Tax Officer-5(3)(2), Shipping Ltd. (Formerly Room No.526B बनाम/ Known As Sci Forbes Ltd.), Aayakar Bhavan, Vs. C/O- Kalyaniwalla & Mistry M.K. Road, Llp, Esplanade House, Mumbai-400020 02Nd Floor, Hazarimal Somani Marg, Fort, Mumbai-400001 ("नधा"रती /Assessee) (राज"व /Revenue) Pan. No. Aakcs0662F

Section 115VSection 56

…td. v/s ITO, 52 taxmann.com 347; 7 Shapoorji Pallonji Forbes Shipping Ltd. (Formerly known as SCI Forbes Ltd.), vii) CIT v/s Indo Swiss Jewels Ltd., 284 ITR 389; viii) Keshavji Ravji and Co. v/s CIT, 183 ITR 1; ix) ACG Associated Capsules Pvt. Ltd. v/s CIT, 343 ITR 89; x) Liberty Footwear Co. v/s CIT, 383 ITR 195. 8. Learned Departmental Representative strongly relying upon the observations of the learned Commissioner (Appeals) and the Assessing Officer submitted, as per the TTS under Chapter–XII–G, only the income from operating qualifying ships are to be considered as ‘relevant shipping income’ as provided un…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 575/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

M/S Vardhman Textiles Ltd., Ludhiana vs. Addl. CIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 528/CHANDI/2009[2005-06]Status: DisposedITAT Chandigarh04 May 2018AY 2005-06

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 981/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

Vardhman Textiles Ltd., Ludhiana vs. JCIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 938/CHANDI/2008[2004-05]Status: DisposedITAT Chandigarh04 May 2018AY 2004-05

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

ACIT, Ludhiana vs. M/S Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 530/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

Vardhman Textile Ltd., Ludhiana vs. ACIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 475/CHANDI/2008[2003-04]Status: DisposedITAT Chandigarh04 May 2018AY 2003-04

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

ACIT, Ludhiana vs. Vardhman Textiles Ltd., Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 691/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…

M/S Vardhman Textiles Ltd., Ludhiana vs. ACIT, Ludhiana

In the result appeals of the Assessee and the Revenue are partly allowed

ITA 681/CHANDI/2007[2002-03]Status: DisposedITAT Chandigarh04 May 2018AY 2002-03

Bench: Smt. Diva Singh & Dr. B.R.R. Kumarassessment Year: 2002-03

For Appellant: Shri. Subhash AggarwalFor Respondent: Sh. Ashish Abrol
Section 10BSection 14ASection 80H

…income from other sources and whereas the income on account of interest on delayed payments from customers etc. should be considered by the A.O. as business income of the assessee.” 24.3 Before us Ld. AR relied on the judgment of ACG Associated Capsules Ltd. 343 ITR 89 (Supreme Court) the relevant extract of the judgment is reproduced hereunder: The assessee filed an appeal against the assessment order before the Commissioner of Income-Tax (Appeals), who confirmed the order of the Assessing Officer excluding ninety per cent of the gross interest and gross rent received by the assessee while computing the profit…