2016 (7) TMI 918

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....allenge is a judgment and order dated 30th June, 2006 passed by the Income Tax Appellate Tribunal "E" Bench, Kolkata in ITA No. 490/Kol/2005 and ITA No. 607/Kol/2005 both pertaining to the assessment year 2000-01. The earlier appeal was an appeal by the assessee and the latter appeal was an appeal by the revenue. Part of the appeal preferred by the assessee was allowed and part of the appeal pref....

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.... CIT(A) in deleting the disallowance of Rs. 2 crore out of sundry expenses without going into the details of expenditure and by relying on the submission of the assessee in violation of Rule 46A ? 3. Whether on the facts and in the circumstances of the case the Ld.Tribunal was justified in law in restoring the matter back to the file of the A.O. in excluding the payment received in Indian curre....

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....he aircrafts was used by the directors for personal purposes ?" In so far as the question no.1 is concerned, it is not in dispute that the law applicable to the assessee is as at 1st April, 2000. The revenue sought to rely upon Section 35DDA which was introduced with effect from 1st April, 2001. Therefore, the contention of the revenue failed both before the CIT(A) and before the learned Tribuna....

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....as follows:- "The disallowance made by the A.O. is purely based on conjecture and surmises and not on any material evidence on record. As such the addition of Rs. 2 crores is deleted." Learned Tribunal upheld the same. When the disallowance was made purely on the basis of conjecture there was no alternative to the CIT(A) or to the learned Tribunal but to delete the disallowance. In that view o....