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Issues Involved:
The judgment involves the withdrawal of departmental appeal, survival of cross objection, and exclusion of income from interest and dividend while computing deduction under sections 80HHA and 80-I. Departmental Appeal Withdrawal: The departmental appeal was withdrawn by the learned D.R., and permission was granted for the same, resulting in the appeal being dismissed. Survival of Cross Objection: The assessee raised objections in the cross objection, with some objections being withdrawn. The only objection that survived for adjudication was related to the exclusion of income from interest and dividend while computing deductions under sections 80HHA and 80-I. The Revenue raised a preliminary objection that the cross objection does not survive after the appeal withdrawal, but the learned counsel argued that a cross objection is akin to an appeal and cited a judgment of the Supreme Court to support this contention. The Tribunal overruled the preliminary objection based on the Supreme Court's judgment, emphasizing that a cross objection is similar to an appeal and can be heard and determined even if the main appeal is withdrawn or dismissed. Exclusion of Income for Deduction: The Tribunal referred to a previous decision regarding the treatment of interest income from fixed deposits made for commercial expediency. It was held that if fixed deposits are made for commercial reasons, the interest earned would be considered business income eligible for deduction under sections 80-HHA and 80-I. The Tribunal directed the issue to be sent back to the Assessing Officer for further examination to determine if the fixed deposits were made for commercial expediency. The Tribunal upheld the income from dividends as per the CIT(A) order. Consequently, the Revenue's appeal was dismissed, and the cross-objection of the assessee was allowed in part for statistical purposes.
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