Definitely not he finest specimen of Italian brand, Atala is a historical company (as you can see from the proud "campione del mondo" - world champion - sticker) which had turned to low end and city bikes by the beginning of the nineties. With the explosion of Mtbs they tried to jump on the train and ended up launching a full line of ATBs, ranging from cheap models up to middle-high end ones.
The one you have was the top steel model, while the most expensive one had an alu frame. Curiously, I've never seen a XT equipped steel Atala... this must be the 1990 model, since the 1991 mounted a dx gruppo.
Oria Steel were a popular tube supplier, they also offered some fine pipes (cromovan, they were called, from), but the ones on the lugged bike you have were quite low end.
For what I remember, the bikes were too heavy, had short top tubes, but were overbuilt and could take quite a beating.
Well, I think this is all I know....