The assessee is  engaged in the business of marketing cinematographic sensitised material or picture positives in its industrial undertakings situated at Pondicherry. The Assessing Officer held that in computing the deduction interest received by the assessee from the banks on the margin money deposits or interest received from customers on belated payment of invoices was not includible and this was upheld by the Tribunal. On appeal the court held that   the interest earned by the assessee on margin money deposits with the bank and interest on short-term loans and advances in the form of belated payments made by customers was very much profits and gains of the business of the assessee and therefore, the assessee is  entitled to deduction under section 80IA  of the Act . ( AY. 1994-95, 1995-96)