Tribunal grants deductions under Sections 80-I, 80G, and 37(2A), directs AO for reexamination under Section 43B.

The Tribunal granted the assessee full deduction under Section 80-I, upheld the CIT(A)'s decisions on deductions under Sections 80G and 37(2A), and directed the AO to reexamine the disallowance under Section 43B in light of a Supreme Court decision. The recalculation of interest under Section 215 was also ordered after giving appeal effect to the order.

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Issues Involved:
1. Deduction under Section 80-I.
2. Disallowance under Section 43B.
3. Deduction under Section 80G.
4. Disallowance under Section 37(2A).
5. Recalculation of interest under Section 215.

Detailed Analysis:

1. Deduction under Section 80-I:
The assessee claimed a deduction under Section 80-I for the assessment year 1987-88, which was initially denied by the AO based on the previous year's decision. The AO argued that the assessee was not an independent industrial undertaking and was dependent on the production process of others. The CIT(A) partially accepted the assessee's plea, allowing 25% of the admissible amount, acknowledging that the assessee had installed machinery and employed the requisite number of workers. Both the assessee and the Revenue were aggrieved by this decision. The Tribunal held that the assessee was entitled to the full deduction under Section 80-I, noting that the assessee had installed machinery worth Rs. 10,88,760, employed the requisite number of employees, and was engaged in the manufacturing process, including formulation, processing, and packing of drugs.

2. Disallowance under Section 43B:
The CIT(A) confirmed the disallowance of Rs. 78,822 on account of sales-tax liability by invoking the provisions of Section 43B. The Tribunal restored the issue to the file of the AO to be readjudicated in light of the Supreme Court decision in Allied Motors (P) Ltd. vs. CIT.

3. Deduction under Section 80G:
The CIT(A) allowed the deduction under Section 80G, which was contested by the Revenue. The Tribunal upheld the CIT(A)'s decision, referencing the Supreme Court decision in CIT vs. Ogale Glass Works Ltd., which stated that the payment relates back to the date of issue of the cheque after its encashment.

4. Disallowance under Section 37(2A):
The CIT(A) reduced the disallowance under Section 37(2A) by Rs. 1,37,882. The AO had disallowed 25% of the expenses incurred on organizing symposiums and seminars, considering them as entertainment expenses. The CIT(A) found that contributions made directly to conference organizers could not be disallowed as entertainment expenses, but restricted the disallowance to Rs. 15,000 for payments made to hotels and clubs. The Tribunal upheld the CIT(A)'s decision, finding no reason to interfere.

5. Recalculation of Interest under Section 215:
Both the assessee and the Revenue raised issues regarding the recalculation of interest under Section 215. However, no specific arguments were advanced, and the Tribunal directed the AO to charge interest under Section 215, if any, after giving appeal effect to the order.

Conclusion:
The Tribunal allowed the assessee's appeal partly, granting the full deduction under Section 80-I, and dismissed the Revenue's appeal, upholding the CIT(A)'s decisions on deductions under Sections 80G and 37(2A) and directing the AO to readjudicate the disallowance under Section 43B in light of the Supreme Court's decision. The recalculation of interest under Section 215 was also directed to be done after giving appeal effect to the order.

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