1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. INCOME TAX APPEAL (LODG.) NO.995 OF 2010 The Commissioner of Income Tax-14 ..Appellant. Vs. M/s.Trend Setters ..Respondent. .... Mr. D.K.Kamwal for the Appellant. Mr.B.V.Jhaveri with Ms.Preeti Shukla for the Respondent. ..... CORAM : DR.D.Y.CHANDRACHUD & J.P.DEVADHAR, JJ. 29 June 2010. P.C. : 1. Three questions of law have been formulated by the Revenue in this appeal under Section 260-A of the Income Tax Act, 1961. Counsel appearing on behalf of the Revenue and counsel appearing on behalf of the assessee are agreed in stating before the Court that the first two questions shall be governed by the decision of this Court rendered today in Commissioner of Income Tax v. Kalpataru Colours and Chemicals (ITA(L) 2887 of 2009). The first and the second questions shall accordingly stand governed by the said 2 judgment. The Assessing Officer is directed upon remand, to make a determination in accordance with law having due regard to the judgment delivered in the said case. 2. The appeal is admitted on the following substantial question of law : “C. Whether the ITAT was right in law in restoring the issue to the A.O. with the direction that netting off of ‘interest receipts’ against ‘interest payment’ should be allowed and 90% of such net interest income should be excluded from the profit of the business for calculating deduction u/s.80HHC of the Act, when the ‘interest received’ and ‘interest paid’ fall under different heads of income?” 3. Counsel appearing on behalf of the Revenue and counsel appearing on behalf of the assessee are agreed that the aforesaid question would have to be answered in favour of the Revenue and against the assessee, in view of the judgment of the Division Bench of this Court in Commissioner of Income Tax v. Asian Star Company Limited (ITA 200 of 2009 decided on 18 March 2010). The third question of law shall accordingly stand answered in favour of the 3 Revenue and against the assessee. The appeal is accordingly disposed of. There shall be no order as to costs. (Dr. D.Y.Chandrachud, J.) (J.P. Devadhar, J.)