- (1.) This order will dispose of two appeals, Income-tax Appeal Nos. 530 of 2006 and 516 of 2008 as the counsel for the parries submit that common questions are involved in these appeals. The facts have been taken from Income-tax Appeal No. 530 of 2006.
(2.) This appeal under Section 260A of the Income-tax Act, 1961 (for short ''the Act'') has been filed by the Assessee against the order dated April 27, 2006, passed by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (in short ''the Tribunal'') in I.T. A. No. 1068/Chandi/2005, relating to the assessment year 2002-03.
(3.) The appeal was admitted on November 13, 2007 for determination of the following substantial questions of law by this Court: (1) Whether the Tribunal is correct in law in holding that while computing the interest income derived from other co-operative societies for the purposes of computing deduction under Section 80P(2)(d), the expenses can be attributed and deducted more so when these are not identifiable ? (2) Whether in the facts and in the circumstances of the case the Income-tax Appellate Tribunal's order directing the deduction of expenses attributable to the earning of interest income for the purpose of determining deduction under Section 80P(2)(d) is legally sustainable, the same being based on mere presumption and surmises? (3) Whether in the facts and in the circumstances of the case the order of the Income-tax Appellate Tribunal holding that the provision of Section 14A are applicable to the deduction under Section 80P(2)(d) is legally sustainable in law ?;