2016 (1) TMI 229

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....r Mittal,J. 1. This appeal has been preferred by the appellant-revenue under section 260A of the Income Tax Act, 1961 (in short, "the Act) against the order dated 27.3.2009, Annexure IV passed by the Income Tax Appellate Tribunal, Delhi Bench 'I' New Delhi (in short, "the Tribunal") in ITA No.2659/Del./2005 for the assessment year 1996-97, claiming following substantial question of law:-....

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.... be carried forward. The Assessing officer made a disallowance of Rs. 36,40,481/- on account of bad debts on the ground that the assessee had failed to give any plausible explanation vide order dated 30.3.1999, Annexure I. The assessee did not produce evidence of the debt becoming bad in the case of all the parties. On appeal by the assessee, the CIT(A) vide order dated 21.3.2005, Annexure II dele....

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....- was the advance made to M/s Chemicals of India for the purchase of material. The material was not received by the assessee. The expenditure was in the course of the business of the assessee. Therefore, the Assessing officer was directed to allow the said amount as a business expenditure. 5. While reversing the findings recorded by the CIT(A), Tribunal recorded thus:- "39. In regard to the iss....