1 itxa4281-09 agk IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4281 OF 2009 The Commissioner of Income Tax - 8, Mumbai ..Appellant. Versus M/s.Leela Scottish Lace Private Limited ..Respondent. Mr.Suresh Kumar for the appellant. Mr.Nitesh Joshi with Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & Smt.R.S. Dalvi, JJ. DATE : 28th March, 2011. P.C. : 1. Heard. Following questions of law have been raised by the Revenue in this appeal. i) Whether on the facts and in circumstances of the case, the ITAT was correct in law in directing the Assessing Officer to exclude net interest and not gross interest receipts for the purpose of application of Clause (baa) of Explanation to section 80HHC without taking into consideration Board's Circular No.621 dated 19-12-1991 ? ii) Whether on the facts and in circumstances of the case, the ITAT was correct in law in treating the lease income relatable to land as business income and that of bungalow as Income from house property and not entire lease rentals as income from other sources. 2. As regards second question is concerned, Counsel for the 2 itxa4281-09 Revenue fairly states that similar question raised by the Revenue in the assessee's own case for assessment year 1995-96, being Income Tax Appeal No.1817 of 2009, has been rejected by its order dated 18-09-2009. Accordingly, the second question cannot be entertained. 3. The appeal is admitted on the first question. 4. Counsel for the parties state that the said question is covered in favour of the Revenue by the decision of this Court in the case of CIT V/s. Asian Star Co. reported in 326 ITR 56. Accordingly, the first question is answered in favour of the Revenue and against the assessee. 5. The appeal is accordingly disposed off. No costs. (Smt.R.S. Dalvi, J.) (J.P. Devadhar, J.)