JUDGMENT :

A. Pasayat, J. - The challenge in this writ application is to the order passed by the Income Tax Appellate Tribunal, Cuttack Bench (in short, " the Tribunal "), purportedly exercising power u/s 254(2) of the Income Tax Act, 1961 (in short, " the Act ").

2. The background facts are that, for the assessment year 1982-83, Messrs. Union Steel Products, a partnership firm (hereinafter referred to as " the assessee "), was assessed on an income of Rs. 24,69,530. The assessee had received a sum of Rs. 13,43,000 in respect of an award in arbitration proceedings, interest of Rs. 11,48,575 and Rs. 38,641, and costs of Rs. 1,054. These formed the subject-matter of assessment. While computing the income, the Assessing Officer deducted a sum of Rs. 66,808 claimed by the assessee to have been incurred for earning the award amount. The assessee challenged the assessment in appeal before the Commissioner of Income Tax (Appeals). By order dated January 30, 1987, the Commissioner of Income Tax (Appeals) modified the income as assessed on the following scores :

(i) The amount received as refund of security deposit was to be excluded from the gross receipts.

(ii) The amounts awarded towards wag