HEMANT GUPTA,J.: - (1.) THIS order shall dispose of IT Appeal No. 183 of 2002 and IT Appeal No. 132 of 2004 arising out of the asst. yrs. 1990-91 and 1991-92 from the separate orders of the Tribunal dt. 31st May, 2002 and 18th Dec., 2003. Since the issues raised are common, the same are being taken up for hearing together.
(2.) LEARNED counsel for the assessee fairly pointed out that most of the questions of law, such as in respect of cash compensatory allowance, trading profits, interest incomes, rental incomes and property income stand decided against the assessee in ITA No. 46/Chd/2002 therefore, the assessee has sought the decision of this Court only on the following question of law : "Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in holding that the assessee was not entitled to deduction under ss. 80-I and 80HHC of the IT Act, 1961 in respect of income from dry-cleaning charges ?" The brief facts out of which the said question of law is stated to have arisen are that the assessee is an industrial undertaking engaged in manufacturing and sale of cotton hosiery goods. The assessee has also made export sales. The AO disallowed the following deductions as not falling under S. 80-I of the Act : (i) Trading profits Rs. 58,78,207 (ii) Property income Rs. 72,000 (iii) Interest income Rs. 33,71,360 (iv) Dry-cleaning receipts profits Rs. 36,740 (v) CCA and income from sale of import licences Rs. 4,61,68,922 Total Rs. 5,55,27,229
(3.) THE AO also deducted Rs. 34,43,360 from the total income consisting of : (i) interest income on advances to various firms and companies while dealing with deduction under S. 80-I to the tune of Rs. 33,71,360; and (ii) rental income to the tune of Rs. 72,000.;