ORDER :

1. Heard learned counsel on both sides. These civil appeals filed by the assessee pertain to Assessment Years 1985-1986, 1986-1987, 1989-1990, 1990-1991 and 1992-1993.

2. The assessee is a limited Company engaged in the business of extraction of manganese and iron ore. The assessee is also a mine owner. For Assessment Year 1985-1986, the assessee filed its Return of Income on 30th October, 1985 declaring a loss of Rs. 8,65,97,200/-. Subsequently, the Company filed its revised Return of Income declaring a loss of Rs. 12,83,16,800/-.

3. One of the claims made for deduction by the assessee was under Section 37(1) of the Income Tax Act, 1961 [`Act', for short]. The assessee claimed that it had spent a sum of Rs. 11,40,641/- as welfare expenses towards providing education to its employees' children. During the course of discussion with the Assessing Officer, the Company stated that it had made payments to other educational institutions where the children of its employees were studying. At this stage, it is important to note that assessee has established Sandur Residential School and Sandur Education Society for imparting education to students in that area.

4. Before us, it has been