T.S. SIVAGNANAM, J.

1. We have heard the learned counsel on either side.

2. This appeal, by the assessee under Section 260A of the Income Tax Act, 1961 (for brevity, the Act), is directed against the order passed by the Income Tax Appellate Tribunal dated 30.11.2007 in ITA.No.1777/Mds/2006 for the assessment year 2001-02.

3. The above appeal has been admitted on 05.9.2008 on the following substantial questions of law :

"i. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the activities carried on by the assessee in its project at Abu Dhabi will not come under the definition of 'foreign project' as defined in Section 80HHB of the Income Tax Act, 1961 and consequently the assessee is not entitled to the deduction of the same from its gross total income and

ii. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that list of items listed by the Commissioner of Income Tax (Appeals) in pages 3.6 (iv) and (v) and pages 5 and 6 of its orders dated 27.3.2006 involve only activities relating to shutting down of refinery ?"

4. The facts, which are necessary for the disposal of the appeal, are as follows :

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