( 1 ) REFERENCE Case No. 126 of 1992 arises out of the order of the Income-tax Appellate Tribunal in I. T. A. No. 1822/ (Hyd) of 1990 dated 23/03/1992. Messrs. V. V. Trans-investments (P.) Ltd. , Hyderabad, aggrieved by the said order made a Reference Application No. 101/ (Hyd) of 1992, before the Appellate Tribunal to refer to this court certain questions of law for the opinion of this court.

( 2 ) WRIT Petitions Nos. 5408, 6102 and 6141 of 1993 are filed by the Deputy Commissioner of Income-tax (Assessment) - III Hyderabad, Deputy Commissioner of Income-tax (Assessments), Special Range-3, Hyderabad, and the Assistant Commissioner of Income-tax, Investigation Circle-I (1), Hyderabad, respectively, on behalf of the Department, for a writ of certiorari or order or direction, to call for the records relating to I. T. A. No. 1845/ (Hyd) of 1990, for the assessment year 1988-89, I. T. A. No. 822/ (Hyd) of 1992 for the assessment year 1989-89, respectively, passed by the Income Appellate Tribunal, Hyderabad Special Bench, Hyderabad, dated 4/02/1993, and quash the order of the Special Bench.

( 3 ) MESSRS. Surana Steels Pvt. Ltd. , Secunderabad (first respondent in W. P. No. 5408 of 1993), Messrs. Binjusaria Metal Box Co. (Pvt.) Ltd. , Hyderabad (first respondent in W. P. No. 6102 of 1993) and Messrs. Agroha Extraction Ltd. , Hyderabad (first respondent in W. P. 6141 of 1993) are the appellants-assessees in the above three income-tax appeals. The Income-tax Appellate Tribunal, Hyderabad Special bench, disposed of all the three appeals by common order dated 4/02/1993, as they involved consideration of common question of law of general importance relating to the construction of section 115j of the Income-tax Act.

( 4 ) IN R. C. No. 126 of 1992, the Hyderabad bench of the Income-tax Appellate Tribunal, consisting of Sri N. D. Raghavan and Sri Chander Singh, disposed of an appeal filed by the assessee, Messrs. V. V. Trans-Investments (P.) Ltd. , Hyderabad, for the assessment year 1989-90, holding that the "loss" as it appears under section 205 (1), first proviso, clause (b), of the Companies Act which was incorporated by reference under section 115j of the Income-tax Act, means excluding depreciation. The Tribunal also confirmed the view expressed by the Income-tax officer and the Commissioner of Income-tax that for arriving at the adjusted book profit, unabsorbed depreciation or business loss, whichever is less, is to be adjusted. Since there was no business loss in earlier years as per the books of account, the amount to be set off was considered as "nil". Pursuant to a request made by the assessee requiring the Tribunal to refer certain questions to this court, the Tribunal by order dated September 30, 1992, referred the following questions under section 256 (1) of the Income-tax Act for the opinion of this court :"1. Whether, on the facts and in the circumstances of the case, the interpretation sought to be put on section 115j of the Income-tax Act by the Appellate Tribunal is correct in law ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that loss as it appears in section 205 (1) first proviso, clause (b) of the Companies Act, 1956, read with section 115j of the Income-tax Act, 1961, means including depreciation ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in placing reliance on the Central Board of Direct Taxes Circular No. 495 (see [1987] 168 ITR (St.) 87), dated September 22, 1987 ? 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in refusing to admit the additional ground ?"

( 5 ) THE facts in brief in R. C. No. 126 of 1992 are as follows : The assessee, namely, Messrs. V. V. Trans-Investments (P.) Ltd. , Hyderabad, is a private limited company. The first year of assessment of the company was the assessment year 1987-88.