2007 (3) TMI 144

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....as been referred for the opinion of thisCourt by the Income Tax Appellate Tribunal, Chandigarh Bench,Chandigarh (for short 'the Tribunal') arising out of order dated 8.9.1988passed in I.T.A.No.606/Chandi/87, in respect of the assessment year 1975-76.. 1.Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law and on facts in deleting disallowance of Rs.....

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.... Act were initiated. During the course of re-assessment proceedings, the assessing officer noticed that as per seized books of accounts total expenditure was to the tune of Rs. 22,27,061/57 under various heads. Account also had an opening balance of Rs. 3,94,884/94, which was incurred prior to April 1, 1974, the date on which the assessee firm was constituted. It was also noticed that there was a ....

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....er April 1,1974. However, CIT(A) rejected the contention of the assessee. In further appeal before the Tribunal, the contention of the assessee was accepted and the expenditure in question was allowed as a deduction in the year in question with the following observations:- "We have given our careful consideration to the rival submissions. In our opinion, the assessee is entitled to these deduct....

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....he assessment year under appeal. The Income-tax Officer and the CIT(A) were, therefore not justified in not allowing these claims. Their orders on this account are, therefore, reversed." 3 We have heard learned counsel for the revenue and perused the record. 4 Primary contention raised by learned counsel for the revenue is that the expenses having not been incurred during the year in questio....