Jhaveri, J. - (1.) By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has partly allowed the appeal of the department reversing the view taken by the CIT(A).
(2.) This Court while admitting the appeal on 11.12.2007 has framed the following substantial questions of law: "(i) Whether on facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that there was a preemptive utilization of the reverse and, therefore, the appellant was not eligible to claim deduction under Section 80HHD(1)? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that no disallowance could be made to the assessee in the year under consideration, even if if assumed that there was no utilization of reserve and thereby not properly applying Section 80HHDD(4) & (5) of the Income Tax Act?"
(3.) The brief facts of this case are that the assessee filed the return of income on 23.10.2000 declaring income of Rs.21,77,124/-. The case was processed u/s 143(1) on 19.12.2000 at total income of Rs.21,77,130/-. Since this was selected for scrutiny, Notice u/s 143(2) was issued on 31.10.2001 to present before the A.O. on 19.11.2001. On the date 19.11.2001 the case was adjourned for sine die. Further notice u/s 143(2) was issued on 2.1.2002 fixing the case for 9.1.2002. Fresh notice u/s 143(2) was issued on 1.11.2002 to present before the AO on 13.11.2002. On the said date adjournment was given for 19.11.2002. On 9.12.2002. Books of accounts comprising cash book, ledger, journal, cash vouchers, bank reconciliation's statement etc. as and when required for verification.;