- (1.) Heard Sri Manish Goyal, learned counsel for the department and Sri Shakeel Ahmad, learned counsel for the assessee.
(2.) This is an appeal filed by the department under Section 260-A of the Income Tax Act, 1961 against an order dated 14.5.2003 passed by the tribunal for the Assessment Year-1995-1996.
(3.) The question of law sought to be answered are hereunder: "(A) Whether on the facts and circumstances of the case, the Hon'ble Tribunal was legally justified in upholding the order of CIT (A) who held that Production Incentive Bonus paid by the assessee is an allowable deduction under Section 37 of the I. T. Act, 1961? (B) Whether on the facts and circumstances of the case, the Hon'ble Tribunal was legally justified in upholding the order of CIT (A) who allowed deduction of Rs. 5,98,94,708/- being receipt on account of extra sales price realised on sale of sugar in open market out of levy quota treating it a capital receipt while Hon'ble Allahabad High Court vide its order dated 05.03.2003 in the case of Dhampur Sugar Mills Ltd., Dhampur for the Assessment Year 1974-75 decided this issue in favour of Revenue?";