2006 (7) TMI 137

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....an answer to the following two questions of law: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in law in directing the Assessing Officer not to deduct income-tax refunds of earlier years from the book profits in computing the deduction under section 32AB? 2. Whether, the Tribunal is correct in law in holding that the income-tax r....

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....ccordingly allowed a deduction for Rs. 4,55,07,809. An unsuccessful appeal was filed and thereafter the matter was taken to the Tribunal. Before the Tribunal, additional grounds were raised by the assessee with regard to the applicability of section 32AB. The Tribunal by a detailed order has chosen to give a direction to the Assessing Officer not to deduct the amount of Rs. 1,65,25,550 from the bo....

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....ef to the assessee. After hearing we have carefully perused the material on record. Section 32AB provides for investment deposit account. Section 32AB provides for total income chargeable to tax under the head "Profits and gains of business or profession". Sub-section (3) provides for the profits of business or profession of an assessee for the purposes of sub-section (1). In the case on han....