TMI Blog1996 (9) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of answering this question are : The assessee-company owns two estates, namely, Dinjoye Tea Estate and Limbuguri Tea Estate. The business of the assessee-company is to grow, manufacture and sale of tea. The relevant assessment year was 1988-89. The Assessing Officer completed the assessment under section 143(3) of the Act determining the total income at Rs. 45,26,500. The assessee company claimed deduction of an amount of Rs. 1,97,310 received on tax free bonds. However, the Assessing Officer did not accept the contention of the assessee-company and accordingly refused to deduct the same. The assessee-company also claimed deduction under the provisions of section 32AB of the Act on the basis of the audit report under Form No. 3A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of answering the question may be quoted thus : "32AB. (1) Subject to the other provisions of this section, where an assessee, whose total income includes income chargeable to tax under the head 'Profits and gains of business or profession', has, out of such income,-- (a) deposited any amount in an account (hereafter in this section referred to as 'deposit account') maintained by him with the Development Bank before the expiry of six months from the end of the previous year or before furnishing the return of his income, whichever is earlier ; or (b) utilised any amount during the previous year for the purchase of any new ship, new aircraft, new machinery or plant, without depositing any amount in the deposit account und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to be included for allowing deduction under section 32AB of the Act. Mr. Bhuyan, on the other hand, submits before us that for the purpose of answering the question it is to be seen whether the income is calculated under the head "Profits and gains of business or profession". Mr. Bhuyan also submits that if the interest and dividend do not come from the profits and gains of business or profession in that case the same shall not be added to the income of the assessee for the purpose of deduction of allowance under section 32AB of the Act. Mr. Joshi, on the other hand, submits that in order to come to a proper calculation the provisions of sub-section (3) of section 32AB of the Act is relevant. We are of the view that we cannot answer t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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