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Section 80I of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings etc., after certain dates / infrastructure undertakings Assessee is entitled to relief under section 80-I without reducing profits and gains by deduction allowable under section 80HH [A.Y. 1989-90]. For the reasons stated in the case of CIT v. Amond Stamping [2005] 274 ITR 176 (Guj.) as well as in case of CIT v. Sidhpur Isabgul Processing Co. Ltd. [2001] 252 ITR 777 (Guj.) the assessee is entitled to relief under section 80-I without reducing profits and gains by deduction allowable under section 80HH. Manish R. Bhatt for the Commissioner. JUDGMENT (Oral judgment) D.A. Mehta, J.-The Income-tax Appellate Tribunal, Ahmedabad Bench "A" has referred the following two questions under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue : 1.R. A No. 572/Ahd/1996 the assessment year 1989-90 : ''Whether the Appellate Tribunal is right in law and on facts in holding that the assessee is entitled to relief under section 80-I of the rate of 20% of the profit without allowing deduction under section 80HH?" 2.R. A. No. 573/Ahd/1996 the assessment year 1989-90 : "Whether the Appellate Tribunal is right in law and on facts in confirming the view taken by the Commissioner of Income-tax (Appeals) holding that interest received from bank, insurance, etc., should be considered as a part of business income for computing the deduction under section 80HH of the Act?" The two questions, though relatable to the same assessment year, i.e., 1989-90, arise out of two cross-appeals before the Tribunal which were decided by the Tribunal vide common order dated August 23, 1996. The relevant accounting period for the assessment year in question is the financial year ended on March 31, 1989. The assessee, a registered firm, claimed deduction under sections 80HH and 80-I of the Act on a gross total income of Rs. 62,44,000. The Assessing Officer partially disallowed the relief under section 80-I of the Act by first of all computing the deduction under section 80HH of the Act and deducting the same from the figure of profits for the purposes of computing the relief under…

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