D.V. Shylendra Kumar, J.

These two set of appeals under section 260-A of the Income Tax Act, 1961 [for short 'the Act'] are by the revenue directed against the common order dated 20.07.2001 passed by the Income Tax Appellate Tribunal, Bangalore Bench in so far as it relates to ITA No.680/B/99 with reference to the assessment year 1996-97 and order relating to ITA No.916/B/2000 referable to the assessment year 1997-98.

2. The respondent – assessee is a public limited company essentially carrying on the activity of manufacture and sale of alcoholic beverage 'beer' and in terms of the Memorandum of Association of the company while this activity constitutes the main activity for which the company M/s. United Breweries Limited, as the very name suggests, had been established, incidentally also had the object of related activities as indicated in the memorandum of association of the company which read as under:

3. The objects for which the Company is established are:-

(a) Primarily and without prejudice to the generality of the other objects of the Company, to purchase or otherwise acquire and take over as going concerns the businesses of Brewers and otherwise heretofore ca