2010 (11) TMI 807

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.... appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, "the Act") against the order dated 9.9.2009 of the Income Tax Appellate Tribunal, Chandigarh in I.T.A. No.465/CHANDI/2009 for the assessment year 2005-06 proposing to raise following substantial questions of law:-   "Whether on the facts and circumstances of the case, the Hon'ble ITAT is j....

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....e Tribunal. It was observed:-   "9......... It is a case where a claim made by the assessee has been rejected and we may further say that the claim made by the assessee cannot be termed as patently erroneous or in complete ignorance of the relevant provisions of law. The assessee had made a claim in terms of Section 36(1) (vii) and this Section, as understood by the Special Bench of the Tr....

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.... falsity in claim of the assessee has been found even during the assessment proceedings. The disallowance is based on a mere view adopted by the Assessing Officer. The claim made in the return cannot be said to be bereft of bonafides. Considering the entire facts and circumstances of the case, we find ample force in the conclusion drawn by the CIT(Appeals) that the Assessing Officer was not justif....