KABADI ENTERPRISES REP Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE assessee is before us in this appeal.

(2.) THE assessee filed return of income for the assessment years 1988-89 and 1989-90, declaring rs. 1,82,155/- and Rs. 3,69,879/- respectively. The Assessing Authority while concluding the assessment for the year 1988-89, included the interest concerned Rs. 1,97,821/-while quantifying the relief under Section 80hhc of the Income Tax Act (for short, 'the Act') by holding that interest cannot be treated as business income. Similarly, for the assessment year 1989-90, he denied the benefit of Section 80hhc insofar as the interest income is concerned. Aggrieved by the same, the assessee filed two appeals. The Assessing Authority passed a common order. The assessing Authority accepted the contention of the assessee with regard to interest income, job work tailoring and nomination profits for the purpose of benefit under Section 80hhc of the Act the revenue moved the Tribunal. The appeal of the revenue was accepted. It is in these circumstances, the appellant-assessee is before us.

(3.) THE assessee has raised the following two questions of law for our consideration: