Supreme Court of India

M/s Acg Associated Capsules Pvt. Ltd. v. The Commissioner of Income Tax, Central-iv, Mumbai

Neutral citation
Reported as [2012] 2 S.C.R. 401
Bench S.H. Kapadia, A.K. Patnaik and Swatanter Kumar JJ.
Decided 8 February 2012

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3 Supreme Court benches have cited this judgment.

What the Court ordered

In the result, we allow the appeal and set aside the C impugned order of the High Court and remand the matter to the Assessing Officer to work out the deductions from rent and interest in accordance with this judgment.

Judgment, page 14

From the headnote

c Income Tax Act, 1961: s.BOHHC, Explanation (baa) - Deduction under - Held: Ninety per cent of the net interest, which has been included in the profits of the business of the assessee as computed under the head 'Profits and Gains of Business or Profession' is to be deducted under clause (1) of Explanation (baa) to s. BOHHC for determining the profits of the business. ! The question which arose for consideration in the instant appeals was whether while determining the profits of the business as defined in Explanation (baa) to Section 80HHC of the Income Tax Act, 1961, ninety per cent of only

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