1989 (2) TMI 62

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..... G. SOHANI, ACTG. C. J. -The judgment in this case will also govern the disposal of M. C. C. No. 256 of 1985 as a common question of law arises in these cases. By these references under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opini....

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....eld that the assessee was entitled to deduction under section 36 ( 1 ) (viii) of the Act on the basis of total income arrived at before making any deduction under section 36(1)(viii) of the Act. Aggrieved by the order passed by the Commissioner of Income-tax (Appeals), the Revenue preferred an appeal before the Tribunal. The Tribunal dismissed the appeal. Aggrieved by the order passed by the Tribu....

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.... computing total income. However, section 36(1)(viii) of the Act provides that deduction admissible under that provision has to be calculated on the basis of total income computed before making any deduction under Chapter VI-A of the Act. In view of this provision, it would not be permissible for the assessing authority, as held in CIT v. Bihar State Financial Corporation [1983] 142 ITR 518 (Pat),....