COMMISSIONER OF INCOME-TAX Vs. AGRAWAL BROTHERS

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Indore Bench, Indore, has on an application by the applicant-Department made under Section 256 (1) of the Income-tax Act, 1961 (for short "the Act"), stated the case and referred the following question said to be of law for the opinion of this court, arising out of its order dated November 9, 1992, passed in I. T. A. Nos. 143 and 144/ind of 1988 relating to the assessment years 1985-86 and 1986-87 :

(2.) BRIEFLY stated the facts leading to this reference are thus : The years of assessment involved are 1985-86 and 1986-87. The non-applicant assessee is a registered firm engaged in the business of construction of overhead water tanks. The assessee was denied deduction claimed under Section 80hh for the year 1985-86 and under Sections 80hh and 80-I for the assessment year 1986-87. On appeal, the Commissioner of Income-tax (Appeals) upheld the disallowances.

(3.) THE assessee came in second appeal before the Tribunal. The Tribunal by its order dated November 9, 1992, allowed the deduction under Section 80hh in the assessment year 1985-86 and under Sections 80hh and 80-I for the year 1986-87 as claimed by the assessee. The Tribunal, inter alia, observed :