1. Revenue is before this Court challenging the order dtd 26-2-2001 passed in ITA No. 1039/Bang/1998 for the assessment year 1994-95.

2. Assessee carried on the business of manufacturing and sale of telecommunication cables. In respect of the assessment year 1994-95 return of income was filed by the assessee showing a total income of Rs. 8,43,81,674/- on 28-11-1994. The assessing officer in computing the relief under Section 8 of the Act. Assessee had considered only business income from Tele Cables and the assessee did not take into account the loss on account of lease business. The assessing officer concluded that the net income has to be based on the income of the manufacturing business and also the lease business in the light of the judgment of the Supreme Court in Commissioner of Income Tax, Bombay Vs. P.K. Jhaveri, (1990) 181 ITR 79 SC. Aggrieved by the order of the assessing authority an appeal was filed before the appellate commissioner. The appellate commissioner ruled that the assessing authority is not justified in reducing the eligible profits on which deduction under Section 80I is to be given by the loss incurred by the appellant in its leasing business. He all