2004 (4) TMI 6

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uestions read thus: "1. Whether, on the facts and circumstances of the case and in law, the hon'ble Income-tax Appellate Tribunal was justified in deleting addition of Rs. 2,28,539 made to the closing stock on account of Modvat credit? 2. Whether, on the facts and circumstances of the case and in law, the hon'ble Income-tax Appellate Tribunal, was justified in holding that income from intere....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....luding income chargeable to tax under the head 'Profits and gains of business or profession' and if the income from such business is derived from an 'eligible business' and if the assessee has out of such income utilised any amount during the previous year for the purchase of new plant or machinery then it is entitled to a set off of a sum equal to 20 per cent, of the profit of such eligible busin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ind that this business of the assessee-company of buying and selling of units is a business as contemplated under section 32AB of the Act. The question then is: is it an eligible business under the said section? The term 'eligible business' is defined under sub-section (2) of section 32AB. As per that definition, all business of an assessee-company will be an eligible business unless it falls unde....