- (1.) The present appeal is filed by the assessee against the impugned order dated 17th February 2005 passed by the Income Tax Appellate Tribunal, Delhi in ITA No. 920/DEL/2001/2004 for the assessment year 1997-98.
(2.) On 24.09.2007, a Coordinate Bench admitted the appeal on the following substantial question of law : (i)Whether on the facts and in the circumstances of the case, the Tribunal is legally justified in disallowing the claim of Deduction under Section 80 IA at Rs. 1,22,719/-? (ii)Whether on the facts and in the circumstances of the case, six persons working under control and supervision of the assessee, are not employee of the assessee? (iii)Whether on the facts and in the circumstances of the case, disallowance of Staff Welfare Expenditure at Rs. 5,000/- is legally justified?
(3.) The brief facts of the case are that the assessee company has two units namely M/s. Sai Electricals; and M/s. Sai Computer Consultancy. M/s Sai Electricals was engaged in the manufacturing and sale of transformers, electricals goods, job work etc. On the other hand, M/s. Sai Computer Consultancy was engaged in the process of data feeding, accounts, reports, data processing etc. It has three sub units at Meerut, Lucknow and Ludhiana.;