- (1.) WE have heard Shri N.C. Gupta, learned counsel for the appellant. Shri A.N. Mahajan appears for the department.
(2.) THIS Income Tax Appeal under Section 260-A of the Income Tax Act, 1961 (the Act) arises out of the order passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad dated 28.8.2001 in I.T.A. No. 380 (Alld)/1993, for the assessment year 1990-91. The appellant-company is a public limited company engaged in the manufacture and sale of hot glass. In the assessment year 1990-91, the company earned income by way of business and also by way of making investment in the securities. It mostly invested the money in the units of Unit Trust of India. The dividends received from the UTI were shown in the profit and loss accounts prepared as per Part-II and Part-III of Schedule-VI of the Companies Act, 1956, as income from other sources.
(3.) THE assessing authority observed that the assessee has wrongly claimed the Octroi and Entry tax of Rs. 12, 89, 914/- to be the business income, but while calculating the deductions under Section 32-AB of the Act with reference to profit from business, the assessing authority excluded the same amount from the total business income. In Appeal the CIT (A), Allahabad directed the assessing authority to include the amount of Rs.12,89,914/- in the total business profits for the purpose of calculating deductions under Section 32-AB in respect of investment deposit account.;