- (1.) Heard Sri Gaurav Mahajan learned counsel for the department and Sri Arnab Banerji learned counsel for the assessee.
(2.) This is an appeal under section 260A of the Income Tax Act, 1961 filed by the department against the order dated 6.1.2006 passed by the tribunal in I.T.A. no.614/Del/2002 for the assessment year 1997-98.
(3.) The questions of law sought to be answered are as under: "1. Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding the order of the Commissioner of Income Tax (Appeal) who deleted the addition of Rs.5,54,037/- and Rs.5,32,238/- which was added on account of Production Incentive Bonus? 2. Whether on the facts and in the circumstances of the case, the tribunal was legally justified in restricting the disallowance of guest house expenses from Rs.3,81,981/- to Rs.50,000/- in view of provisions of section 37(4) of Income Tax Act, 1961 and judgment of Hon'ble Apex Court reported in 278 ITR 546? 3. Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding that contribution to Provident Fund if paid within grace period is not disallowable u/s43B? 4. Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding the order of Commissioner of Income Tax (Appeal) who deleted the disallowance of Rs.4,45,779/-made on account of cane price and excess levy sugar price? 5. Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding the order of Commissioner of Income Tax (Appeal) who deleted the addition of Rs.2,17,91,050/- made on account of undervaluation of closing stock?";