- (1.) This order shall dispose of ITR Nos. 163 to 166 of 1998, arising out of combined order dated 1-12-1997, passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar ('the Tribunal'), in ITA Nos. 1153 to 1155 (Asr.)/1990 and 49(Asr.)/1991, in respect of assessment years 1987-88 to 1989-90.
(2.) The Tribunal by exercising its power under Section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as - the Act) has referred the following questions of law for determination of this Court: (i) Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that provision of warranty for repairs/replacement is an existing liability at the time of sale and is allowable as deduction (ii) Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the credit in the Modvat account is not to be treated as the income of the assessee although the assessee is ultimately entitled for set off of this amount against the payment of Excise Duty to this extent
(3.) It is appropriate to notice that first question is sought to have emerged in respect of assessment years 1987-88 to 1989-90 whereas second question relates to assessment year 1988-89.;