C.V. KARTHIKEYAN, J.

(Prayer: Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, Chennai, dated 30.11.2007 made in ITA No.795/Mds/2006.)

1. The Assessee has filed the present Appeal calling into question the order of the Income Tax Appellate Tribunal dated 30.11.2007. The Substantial questions on which the Appeal had been admitted on 08.07.2008 are as follows:-

“(i) Whether the Income Tax Appellate Tribunal erred in holding that the appellant was not entitled to the exemption under Section 10(23G) of the Income Tax Act in respect of the liquidated damages?; and

(ii) Whether the Income Tax Appellate Tribunal erred in holding that the deduction to which the appellant was entitled under Section 36(1)(viia)(c) of the Act was not to be granted after reducing from the appellant's income, the deduction to which the appellant was entitled under Section 36(1)(viii) of the Act.”

2. The appellant is a Public Limited Company incorporated on 30.01.1997 with the main object of providing Long Term Finance to enterprises engaged in developing, maintaining and operating infrastructure projects and facil