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ORDER M.C. Tripathi, J. - Heard Sri Shambhu Chopra, learned counsel for the appellant and Sri Nitin Kesharwani, learned counsel appearing for the assessee. 2. This appeal under section 260(A) of the Income Tax Act, 1961 (herein after called the Act, 1961) has been filed against the judgement and order dated 28.05.2005 passed by the Income Tax Appellant Tribunal, S.M.C. Bench, Allahabad (herein after called the Tribunal) in I.T.A.No.390/ALLD/03, for the assessment year 1997-98. 3. The assessing officer by assessment order dated 02.06.1999 rejected the claim of the assessee claiming 100% deduction under Section 80IA(2)(iv)(c) of the I.T. Act, 1961. 4. The assessee filed an appeal before the Commissioner of Income Tax (Appeals), which was decided by the Commissioner on 23.05.2003, allowing the assessee's appeal with following observation:- "The definition of the word Industrial Undertaking to which Section 80IA applies, includes 'processing of goods' also. Therefore, I hold that even processing of goods can be considered alongwith manufacture or production of goods while allowing deduction in respect of profits of the industrial undertaking u/s 80IA of the I.T. Act, 61. Therefore, I direct the A.O. to allow deduction with reference to the entire profits assessed in the assessment order." 5. Aggrieved with the order dated 23.05.2003 the Revenue had filed an appeal before the Income Tax Appellate Tribunal, S.M.C. Bench, Allahabad. The Tribunal vide judgement and order dated 28.05.2005 had partly allowed the appeal, with following observation:- "I have considered the rival submissions. I have seen the calculation of deduction u/s. 80IA of the Act. I find that deduction u/s. 80IA has been claimed on the transformer oil, scrap as well as the labour charges for the sale of scrap. I agree that the transformer oil as such was not sold, but was a part of assembly of transformer and therefore, deduction u/s. 80IA is allowable on it. But certainly, no deduction u/s. 80IA of the Act is allowable on scrap and the labour charges for the sale of scrap. I, therefore, direct the A.O. to allow deduction u/s. 80IA on the transformer oil and withdraw the deduction u/s. 80IA of the…

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