J U D G M E N T

S.VAIDYANATHAN, J.

AND C.SARAVANAN, J.

The assessee has filed this Tax Case Appeal under Section 260A of the Income Tax Act, 1961 [hereinafter referred to as 'Act'] against the order dated 11.04.2008 passed by the Income Tax Appellate Tribunal [hereinafter referred to as “Tribunal”] in I.T.A.Nos.78/Mds/2007.

2. By the common order dated 11.04.2008, I.T.A.No.78/Mds/2007 filed by the appellant was partly allowed and the appeal filed by the respondent Income Tax Department in I.T.A.No.564/Mds/2007 was dismissed. Aggrieved by the same, the assessee has filed this appeal. 3. This appeal was heard along T.C.A No.1025 of 2009. T.C.A No.

1025 of 2009 is being disposed by a separate order. The order impugned in the said appeal arises out of the conclusion arrived by the Tribunal in the impugned order of the Tribunal in this appeal. The present appeal is confined to issues answered against the appellant in I.T.A.No.78/Mds/2007 filed by the appellant.

4. At the time of admission, the following Substantial Questions of Law were framed:-

i. Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that the appellant is not entitled to deduction