Judgment :- P.D.Dinakaran, J. Heard. The appeal is preferred against the order of the Income Tax Appellate Tribunal Madras Bench "C" dated 11.09.2002 in I.T.A.No.2135/MDS/93. 2. The assessee is a widely held company. For the Assessment year 1988-89, the assessee filed a return of income on 28.7.1988 declaring a total income of Rs.30,84,820/-. The assessment was completed on 29.12.1988 determining the total income at Rs.92.02 lakhs. The Commissioner of Income-Tax Tamilnadu - II, exercising power under Section 263 of the Income-Tax Act had set aside the original assessment dated 28.7.1988 by giving directions to the assessing officer to reconsider the working of relief/deduction under Section 32AB of the Act. Aggrieved by the same, the assessee filed an appeal before the Commissioner of Income -Tax (Appeals), who held that the assessing officer has acted upon the direction issued by the Commissioner of Income Tax under Section 263 of the Income Tax Act. Accordingly, the Commissioner of Income Tax (Appeals) partly allowed the appeal for the assessment year 1988-89, against which the assessee preferred an appeal before the Income Tax Appellate Tribunal for the assessment year 1988-89. The Tribunal following the decision reported in 255 ITR 205 (CIT VS. TAMILNADU MERCANTILE BANK LTD.) allowed the appeal. Hence, the revenue preferred the above appeal on the following substantial question of law: "Whether in the facts and circumstances of the case, the Tribunal was right in law in holding that the interest received on temporary deposits with scheduled banks, interest received on deposit for allotment of Maruti car and dividend received from the company are to be excluded while computing the income from eligible business under Section 32AB of the Income Tax Act is valid in law?" 3. Section 32 AB of the Income-tax Act, 1961 provides a benefit to the assessee, who deposits any amount in a development bank before the expiry of six months from the end of the previous year or before furnishing the return of his income, whichever is earlier. That incentive is also available if the assessee utilises any amount during the previous year for the purchase of any new machinery or plant etc. without depositing any amount in the deposit account with the development bank. The benefit is given by way of deduction, such deduction being allowed before the loss, if any, brought forward from earlier years. That incentive is also available if the assessee utilises any amount during the previous year for the purchase of any new machinery or plant etc. without depositing any amount in the deposit account with the development bank. The benefit is given by way of deduction, such deduction being allowed before the loss, if any, brought forward from earlier years. The manner in which the profits of the business should be computed is dealt with in sub-section (3) of Section 32AB of the Income Tax Act, which requires computation to be in accordance with the requirement of Parts II and III of Schedule VI to the Companies Act, 1956. The computation so made is to be increased by the aggregate of the amount set out in sub-clauses (i) to (vii) therein. It is thereafter to be reduced by any amount or amounts withdrawn from reserves or provisions if such amounts are credited to the profit and loss account, as held by the Division Bench of this Court in the case of CIT VS. TAMILNADU MERCANTILE BANK LTD reported in 255 ITR 205. 4. Applying the said ratio as laid down by the Division Bench of this Court in the above referred to case, the substantial question of law raised by the appellant is answered against the revenue. Accordingly, the appeal stands dismissed.