- (1.) THE appeal was admitted on 19th June, 2000. The following three questions were framed: (a) Whether on the facts and in the circumstances of the case the finding of the I.T.A.T. was justified in deleting addition on account of incentive wages, undervaluation of closing stock, deduction under Section 80HHC of the Income -Tax Act, 1961 as well as contribution to Staff Recreation Club? (b) Assessment year 1988 -89 whether on the facts and in the circumstances of the case the I.T.A.T. was justified in deleting addition on account of under valuation of closing stock "due to MODVAT"? (c) Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that the Haldia Export Factory owned by the assessee does not constitute a separate unit and directing the Assessing Officer to give the benefit under Section 80HHC by computing the deduction in accordance with Section 80HHC(3)(b) only instead of the method adopted by the Assessing Officer ?
(2.) THERE is consensus at the bar that the issue as regards incentive wages is covered by a judgment of this Court in the case of CIT Vs. Machinery Manufacturing Corporation Limited, reported in : 198 ITR 559 against the revenue. The issue as regards undervaluation of the closing stock was decided in the case of CIT Vs. Indo Nippon Chemicals Company Limited, reported in : 261 ITR 275 against the revenue.
(3.) THE question as regards allowability of the expenditure incurred in contributing the staff recreation is covered by the judgment in the case of Assam Brook Limited Vs. CIT, reported in : 267 ITR 121 against the revenue.;