1986 (2) TMI 2

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..... -This is an application under section 256(2) of the Incometax Act, 1961 (hereinafter referred to as "the Act"). The material facts giving rise to this application, briefly, are as follows While framing the assessment for the assessment year 1976-77, the Income-tax Officer computed the gross income, i.e., income before giving deduction under section 36(1)(viii) of the Act, at Rs. 14,12,191 ....

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....Following that decision of the Tribunal, the Commissioner of Income-tax (Appeals) allowed the appeal and directed the Income-tax Officer to recompute the deduction under section 36(1)(viii) of the Act. Aggrieved by the order passed by the Commissioner of Income-tax (Appeals), the Department preferred an appeal before the Tribunal. The Tribunal held that the circular letter issued by the Central Bo....

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....ii) of the Income-tax Act, 1961 ?" Having heard learned counsel for the parties, we have come to the conclusion that this application deserves to be rejected. In dismissing the appeal preferred by the Department, the Tribunal has not proceeded to construe the provisions of section 36(1)(viii) of the Act. The Tribunal has merely relied on the circular issued by the Central Board of Direct Taxes.....