VARDHMAN TEXTILES LIMITED vs CIT

Whether 90% of interest received from customers on belated payments could be reduced from 'profit and gains of business' under clause(baa) of Explanation below Section 80HHC(4B) of the Income Tax Act --- Held: No, following Malwa Cotton Spinning Mills Ltd. precedent. Whether deduction under Section 80M should be allowed without allocating personal, administrative, and financial expenses proportionately for computing net dividend income under Section 80AA --- Held: Remanded to Assessing Officer to compute actual expenditure incurred for earning dividend income.