2010 (7) TMI 259

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....Del/94 for the assessment year 1984-85, proposing to raise following substantial questions of law:- i) Whether on the facts and circumstances of the case, the ITAT was justified in law in directing the A.O. to recompute the disallowance under section 37(3A) of the IT Act, 1961? ITA No.161 of 2002 ii) Whether, on the facts and circumstances of the case, the ITAT was justified in law in confirming the direction of the CIT(A) that 40% of Rs.1,86,140/- was to be allowed as expenditure under section 37(2) of the IT Act, 1961? iii) Whether, on the facts and circumstances of the case, the ITAT was justified in law in directing the AO not to charge interest under section 216 of the IT Act, 1961? iv) Whether on the facts and circumsta....

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....ss expenditure was reversed. View of the CIT(A) was upheld by the Tribunal. 3. We have heard learned counsel for the parties and perused the record. 4. Before recording our findings on the issues raised, it will be worthwhile to advert to the findings recorded by the CIT(A) on all the four questions proposed by the revenue:- Re: (i) "As regards disallowance of Rs.21,38,490/- at para 8, ld.  CIT(A) vide his order, supra held that Ld. AO was not justified in including the expenditure on cars insurance and cars repairs in expenditure of the type mentioned in section 37(3A)(3B). Following the order of ld. Tribunal, Bombay Bench in the case of B.A.Bros (Bombay) Pvt. Limited v.  ITO (ITA No.1027 (BCM)/1985, ld. CIT(A) held t....

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.... appeals were not filed and to consider whether the revenue should be allowed to proceed with the present appeal as per principles laid down by the Hon'ble Supreme Court in CIT, Central, Kanpur v. J.K.Charitable Trust, 2008 Vol.175 Taxman Tax Reports 251. No affidavit has been filed on behalf of the revenue. Inspite of absence of any affidavit by the revenue, we have considered the merits on the questions raised particularly in view of pronouncement of the Hon'ble Supreme Court dated 5.10.2005 in Britannia Industries Limited v. CIT (2005) 278 ITR 546, dealing with some of the issues. It is no longer in dispute that provisions of section 37(3A) of the Act as well as Section 37(2) of the Act have to be given effect to irrespective of any othe....