Tribunal Partially Allows Appeals on Debenture Premium, Interest Income, and Miscellaneous Income for AY 1995-96.

The ITAT addressed cross-appeals from the assessee and Revenue concerning the CIT(A) order for the assessment year 1995-96. The Tribunal allowed the assessee's appeal for debenture premium deduction, upheld expenditure on a proposed power project as revenue, and referred a dispute on interest reduction under s. 80HHC back to the AO. The Revenue's appeal was dismissed regarding excess wastage and closing stock valuation, with CIT(A)'s directions upheld. The Tribunal reversed the exclusion of interest income under ss. 80HH and 80-I, maintaining the inclusion of miscellaneous income. Ultimately, the Tribunal partially allowed both appeals based on the issues presented.

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Issues involved:
- Cross-appeals by assessee and Revenue against CIT(A) order for asst. yr. 1995-96.

Assessee's Appeal:
1. Grounds 1(a), (b), and (c) dismissed as not pressed.
2. Grounds 2(a) and 2(b) dismissed due to resolution in subsequent year.
3. Challenge to CIT(A) disallowance of deduction for debenture premium.
- Tribunal, based on previous year's decision, allows deduction.
4. Dispute over interest reduction from profits under s. 80HHC.
- Conflicting Tribunal decisions in previous years, referred to Special Bench.
- Order set aside, referred back to AO for decision based on Special Bench finding.
5. Tribunal decision against assessee upheld, addition sustained.
6. Claim of income from AOP not pressed, dismissed.
7. Fee paid to Registrar of Companies not pressed, dismissed.
8. Addition on foreign travel expenses not pressed, dismissed.
9. Challenge to disallowance of expenses on proposed power project.
- Tribunal holds expenditure as revenue, deletion of addition.
10. General ground not adjudicated.

Revenue's Appeal:
1. Challenge to deletion of addition on excess wastage in cotton yarn production.
- Tribunal dismisses appeal based on previous year's decision.
2. Challenge to deletion of addition on closing stock valuation.
- CIT(A) direction to follow Tribunal order upheld, appeal dismissed.
3. Dispute over deduction under ss. 80HH and 80-I.
- Interest income exclusion reversed, miscellaneous income upheld based on Tribunal decisions.
4. Grounds 5 and 6 dismissed based on Tribunal decisions in favor of assessee.

In conclusion, the Tribunal partly allowed the assessee's appeal and partly allowed the Revenue's appeal based on the specific issues and grounds presented by both parties.

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