COMMISSIONER OF INCOME TAX Vs. GLOBE ORGANICS LIMITED

JUDGEMENT

(1.) THE respondent is a manufacturer and exporter of drugs and intermediaries and the unit was established in an area declared as Backward. In the income tax returns submitted for the assessment year 1993 -94, it claimed deduction under four heads, viz., (a) interest received on letter of credit/margin money, being Rs.4,35,858/ - (b) interest on intercorporate deposits of Rs.10,30,980/ - (c) interest in the form of rebate given by ICICI Bank, being Rs.7,30,000/ - and (d) lease rent of Rs.25,000/ -. The Assessing Officer disallowed all the claims. In the appeal preferred by the respondent, the Commissioner of Income Tax (Appeals) granted the relief in respect of items (a) and (c). The respondent filed I.T.A.No.1902/Hyd/1996, feeling aggrieved by the denial of relief in respect of (b) and (d) before the Hyderabad Bench B of the Income Tax Appellate Tribunal (for short the Tribunal). Through order, dated 27.11.2001, the Tribunal allowed the appeal. Hence, this further appeal under Section 260A of the Income Tax Act, 1961 (for short the Act).

(2.) HEARD Sri J.V.Prasad, learned counsel for the appellant and Sri Pushyam Kiran, learned counsel for the respondent.

(3.) THOUGH the Assessing Officer disallowed four claims made by the respondent, the Commissioner granted the relief in respect of two, and the relief, as regards remaining two, was granted by the Tribunal. The order passed by the Commissioner granting relief in relation to items (a) and (c) has assumed finality. We are concerned with the grant of relief as regards items (b) and (d).