2004 (7) TMI 21

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....d. The appeal is preferred against the order of the Income-tax Appellate Tribunal, Madras Bench "C", dated September 11, 2002 in I.T.A. No.2135/MDS of 1993. The assessee is a widely held company. For the assessment year 1988-89, the assessee filed a return of income on July 28, 1988 declaring a total income of Rs. 30,84,820. The assessment was completed on December 29, 1988 determining the tota....

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....Tribunal following the decision reported in CIT v. Tamil Nadu Mercantile Bank Ltd. [2002] 255 ITR 205 (Mad) allowed the appeal. Hence, the Revenue preferred the above appeal on the following substantial question of law: "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the interest received on temporary deposits with scheduled banks, interest....

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.... brought forward from earlier years. The manner in which the profits of the business should be computed is dealt with in sub-section (3) of section 32AB of the Income-tax Act, which requires computation to be in accordance with the requirement of Parts II and III of Schedule VI to the Companies Act, 1956. The computation so made is to be increased by the aggregate of the amount set out in sub-clau....