CARBORANDUM UNIVERSAL LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The reference is at the instance of the assessee. The assessment year is 1987-88.

(2.) The first question is concerned with the interpretation of Section 32 AB and as to whether it has been construed too narrowly by the Tribunal.

(3.) The Tribunal has held that the exclusion of the amount of interest on securities, dividends and rents while making the computation under Section 32 AB of the Act was in accordance with Section 32 AB even though all those amounts form part of the computation that was required to be made in terms of Parts II and III of the VIth Schedule to the Companies Act for arriving at the profits from the assessee's business.