COMMISSIONER OF INCOME TAX Vs. VENUS ELECTRICALS

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Ahmedabad Bench 'a' has referred the following two questions under Section 256 (1) of the Income-tax Act, 1961, at the instance of the Revenue:

(2.) THE two questions, though relatable to the same Assessment Year i. e. 1989-90, arise out of two cross appeals before the Tribunal which were decided by the Tribunal vide common order dated 23. 08. 1996.

(3.) THE relevant accounting period for the Assessment Year in question is Financial Year ended on 31. 03. 1989. The assessee, a registered firm, claimed deduction under Sections 80hh and 80i of the Act on gross total income of Rs. 62,44,000/ -. The Assessing Officer partially disallowed the relief under Section 80i of the Act by first of all computing deduction under Section 80hh of the Act and deducting the same from the figure of profits for the purposes of computing the relief under Section 80i of the Act. The assessee did not succeed in its appeal before Commissioner (Appeals) and hence, preferred second appeal before the Tribunal. The Tribunal allowed the appeal of the assessee on this count.