2002 (3) TMI 595

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....a, Accountant Member - The appeal by the revenue is directed against the order dated 7-1-1994 of the CIT(A) VIII Bombay pertaining to the assessment year 1990-91. 2. The revenue has taken the following two substantive grounds - On the facts and in the circumstances of the case and in law, the learned CIT(A): 1.erred in holding that interest and dividend income are includible in profits....

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....n query as to why the aforesaid sum be not excluded from the eligible profit for the purpose of deduction under section 32AB, it was submitted before the AO that these were business income and not income from other sources. Rejecting the assessee's contention the AO reduced 20 per cent thereof amounting to Rs. 3,38,275 from the assessee's claim thereby restricting the assessee's claim to Rs. 13,87....

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....d that eligibility related to the profits disclosed in the published accounts and the AO was bound by the said provisions. The AO travelled beyond the provisions in restricting the assessee's claim. Reliance was placed on the decision in M/s. Apollo Tyres 45 TTJ 535. Accepting the above contentions of the assessee the CIT(A) directed the AO to allow the deduction under section 32AB as claimed with....

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....dustries Ltd. v. ACIT [2002] 74 TTJ (Chd.) (SB) 171. 8. We have considered the rival submissions. A look to the provisions of sub-section (3) of section 32AB would go to reveal that it provides that the profits of the business for the purposes of allowing deduction shall be the profits computed in accordance with the requirements of Parts II & III Schedule VI of the Companies Act, 1956 and incr....