- (1.) Appeal Nos.958 of 2008, 700 of 2009 and 701 of 2009, pertain to the assessment years 2003-04, 2005-06 and 2004-05, respectively. We have held that the tax effect of each of these three appeals being less than Rs.20 lacs, they are liable to be dismissed in view of Circular No.21 dated 10.12.2015 issued by the Central Board of Direct Taxes. Despite the same it is necessary to deal with the facts and the proceedings in ITA No. 958 of 2008 which pertain to the assessment year 2003-04 as the orders passed by the authorities i.e. the Assessing Officer, CIT (Appeals) and the Income Tax Appellate Tribunal for the subsequent assessment years are based on their respective orders passed in respect of the proceedings pertaining to the assessment year 2003-04. ITA Nos.714 of 2009, 11 of 2012 and 340 of 2013 are in respect of the assessment years 2006-07, 2008-09 and 2009-10, respectively. The tax effect in these three appeals is higher than the amount stipulated in Circular No.21 of 2015.
(2.) Each of the appeals has been admitted on the same questions of law. We will, however, refer to the facts and the proceedings relating to ITA No.958 of 2008 which is in respect of assessment year 2003-04 as it is on the basis of the orders passed in respect of this assessment year that the orders have been passed by the authorities in respect of the subsequent years.
(3.) Ita No.958 of 2008 pertaining to the assessment year 2003-04 is an appeal against the order of the Income Tax Appellate Tribunal setting aside the order of the Commissioner of Income Tax (Appeals) [for short, CIT (A)] affirming the order of the Assessing Officer on the issues under consideration. According to the appellant, the following substantial questions of law arise:- "1. Whether the Ld. ITAT was right in holding that deduction u/s 80-IB of R.16,22,661/- in respect of Unit-II was admissible notwithstanding that the conditions laid down u/s 80-IB are not satisfied and no deduction has been claimed in A.Y. 2000-01 the initial assessment year. 2. Whether the Ld. ITAT was right in deleting the addition made u/s 145(3) at Rs.14,75,940/- by ignoring the facts that invoking of provisions u/s 145(3) were valid as the assessee did not maintain inventory of opening and closing stock and stock register without which it is not possible to determine the correct income of the assessee for the year." The appeal raises the substantial questions to the above effect but are modified as under:- 1. Whether the Ld. ITAT was right in holding that the assessee was entitled to the deduction u/s 80-IB of R.16,22,661/- in respect of Unit No.II. 2. Whether the Ld. ITAT was right in deleting the addition made u/s 145(3) at Rs.14,75,940/- The contentions raised in the questions framed by the appellant in the appeal will be considered while dealing with the questions reframed by us.;