J.K. Ranka, J. - (1.) THESE income tax reference and Income Tax appeals, filed at the instance of both, Revenue and Assessees, since involve common questions of law, and raise common controversy, are being disposed of, as agreed by counsel for the parties, by this common order.
(2.) IN DBIT Reference No. 4/2003, which relates to the assessment year 1989 -90, filed at the instance of Revenue before the Income Tax Appellate Tribunal (for short 'ITAT'), as directed by this court under Section 256(2) of the Income Tax Act, referred the following substantial question of law: - - "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to deduction under section 80HHC(1) in respect of interest of Rs. 3,62,342/ - earned by employing surplus funds locally, notwithstanding the provisions of sub -section 2(a) of section 80HHC - Dbit Appeal No. 60/2003 : The facts in the instant appeal relates to the same assessee as in IT Reference No. 4/2003 (supra) but for the assessment year 1991 -92. We have already noticed that in Reference No. 4/2003, the appeal was allowed by the Tribunal in favour of the assessee, but in the instant case though between the same parties, the appeal of the assessee before the Tribunal was dismissed though the controversy remaining the same and the Tribunal changed its view. The appeal was admitted on following questions of law: - - "Whether on the facts and circumstances of the case, the Hon'ble Tribunal was justified in holding that assessee is not entitled for deduction under section 80HHC on interest income of Rs. 2,80,007/ - as per law as existing at the relevant assessment year. Whether on the facts and circumstances of the case and on the basis of material available on record, the Hon'ble Tribunal was correct in coming to the conclusion that income from interest on surplus funds is to be treated as Income from other sources even in absence of any such finding by lower authorities."
(3.) DBIT Appeal No. 52/2003, which relates to the assessment year 1991 -92, filed at the instance of Assessee, has been admitted on the following substantial question of law: - - "Whether in the facts and circumstances of the case the ITAT was justified in law in restricting the claim of interest and not allowing full benefit of deduction u/s. 80HHC of interest income as profit and gains from business.";