COMMISSIONER OF INCOME TAX Vs. COCHIN REFINERIES LTD

JUDGEMENT

(1.) THE following questions concerning the assessment years 1969-70 and 1970-71 have been, at the instance of the Revenue, referred to us by the Tribunal, Cochin Bench :

(2.) THE last two questions are covered by the decision of this Court in CIT vs. Cochin Refineries Ltd. (1983) 32 CTR (Ker) 137 : (1983) 142 ITR 441 (Ker), in favour of the assessee and are accordingly answered in the affirmative, that is, in favour of the assessee and against the Revenue.

(3.) THE assessee is a company which carries on business as a priority industry as defined under s. 80B(7) of the IT. Act, 1961 (the " Act"). For the relevant accounting years, the assessee's claim for the inclusion of these amounts in the computation of deduction under s. 80-I was rejected by the ITO, although in regard to certain other items the request was granted. On appeal by the assessee, the AAC held that the company was entitled to the deductions claimed in regard to these disputed items also. The Department's appeal was dismissed by the Tribunal. The Tribunal found that the company was entitled to include these items in computing the deduction under s. 80-I.