( 1 ) (PER : HONOURABLE MR. JUSTICE D. A. MEHTA) the following two substantial questions of law have been formulated at the time of admission:"what is the effect of dismissal of Tax Appeal by the High Court holding that no substantial question of law arises ""2. "whether, on the facts and in the circumstances of the case, the Income Tax appellate Tribunal was justified in holding that while computing deduction u/s. 80i of the Income Tax Act,1961, interest received from trade debtors towards late payment of sales consideration is required to be excluded from the profits of the industrial undertaking as the same cannot be stated to have been derived from the business of the industrial undertaking ""

( 2 ) THE Assessment Year is 1992-93 and the relevant previous year is Financial Year 1991-92. The assessee, a limited company, claimed deduction under Section 80i of the income-tax Act, 1961 (the Act) in relation to two units " Vatva Unit and Mandali Unit. The Assessing Officer held while computing the amount allowable as deduction under section 80i of the Act that sum of Rs. 1,25,23,324/- being late payment interest received from debtors in case of Vatva Unit and Rs. 53,67,140/- being late payment interest received from debtors in respect of Mandali Unit had to be excluded from the profits of the industrial undertaking. According to the Assessing Officer, as held in the assessment order for immediately preceding Assessment Year, viz. Assessment Year 1991-92, late payment interest was received by the assessee due to default of the customers and had nothing to do with industrial activity or the manufacturing activity of the assessee. That it was not an integral part of the profits of the industrial undertaking.

( 3 ) THE assessee carried the matter in appeal before the Commissioner (Appeals), who followed the appellate order in assessees own case for Assessment Year 1991-92 and held that the assessee was entitled to include the aforesaid two sums while computing the profits on which relief under Section 80i of the Act is available. The appellate order came to be challenged by the revenue by way of appeal before the Tribunal. The tribunal while passing the impugned order dated 25th April, 2005 allowed the appeal of the revenue. When the appeal was heard before the Tribunal, on behalf of the assessee, a contention was raised that in assessees own case for Assessment Years 1991 and 1991-92 the fact situation was identical and the Tribunal had held in favour of the assessee; that the revenue had carried the matter in appeal against the decision of the tribunal for the said Assessment Years. However, the High Court admitted the appeal only on one another ground while rejecting the appeal on the ground of availability of relief under Sections 80hh and 80i of the Act on interest received from trade debtors.

( 4 ) THE Tribunal, after taking note of the aforesaid fact, has recorded the following findings from which question No. 1 arises:"18. 9 The question therefore is what is the effect of dismissal of a Tax Appeal by the High Court holding that no substantial question of law arises"section 260a prescribes the provision for an appeal to the High Court. Sub-sections (1) to (5) of section 260a read as under:-260a. (1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. (2) [the Chief Commissioner or the Commissioner or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal to the High court and such appeal under this sub-section shall be"] a. filed within one hundred and twenty days from the date on which the order appealed against is [received by the assessee or the Chief Commissioner or commissioner] b. 50[] c. in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. (3) Whether the High Court is satisfied that a substantial question

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