- (1.) This judgment will dispose of Income Tax Appeal Nos. 503, 370, 387 and 399 of 2007 as similar question of law is involved in all these appeals. However, the facts are taken from Income Tax Appeal No. 503 of 2007.
(2.) The revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referres to as the Act ) against the order dated 12-8-2005 passed by the Tribunal Chandigarh Bench, Chandigarh in ITA No. 750/Chandi/2002 for the assessment year 1999-2000 raising the following substantial question of law: Whether on the facts and the circumstances of the case, the Hon ble Tribunal was right in law in holding that no undue advantage has been taken by the assessee by adjusting the unutilized modvat credit in the revaluation of opening stock.
(3.) The respondent assessee, which is a company, had filed its return of income for the assessment year 1999-2000 showing income of Rs. 9,83,21,890. The assessee is a manufacturer and exporter of cotton yarn, woollen hosiery garments and also trades in cotton yarn. The assessment was framed by the Assistant Commissioner, Central Circle-V, Ludhiana on 28-3-2002 at an income of Rs. 14,94,37,679.;