LASER SOFT INFOSYSTEMS LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal by the Assessee is directed against the order passed by the Income Tax Appellate Tribunal, "B" Bench, Chennai, in I.T.A.No.1124/Mds/2006, dated 02.04.2007 for the Assessment Year 2001-2002.

(2.) The above appeal has been admitted by the order dated 24.07.2008 on the following substantial question of law :

(3.) The Assessee is engaged in the business of software development. For the assessment year 2000-2001, the Assessee filed a return of income on 15-10-2001 admitting an income of Rs. 3,57,79,950/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 (in short "the Act") on 20.01.2003 accepting the same. Subsequently, the return was selected for scrutiny under Section 143(2) of the Act and assessment was completed under Section 143(3) of the Act vide order dated 27.02.2004 determining the total income of Rs. 4,07,24,060/-. While completing the assessment, the Assessing Officer disallowed the provision made by the Assessee for warranty.