- (1.) Heard Sri A.N. Mahajan, learned standing counsel and Sri R.R. Agrawal, learned counsel appearing on behalf of respondent. At the instance of the Revenue, the following substantial questions of law arising from the order of the Tribunal dated June 26, 2000, relating to the assessment year 1990-91, have been raised. (1) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was legally justified in allowing the assessee's claim for deduction to the extent of Rs. 6,84,520 on account of rent paid to the hotel close to the factory at Rampur and transit house in contravention of the provisions of section 37(4) read with section 37(5) of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was legally correct in deleting the addition of Rs. 1,47,831 towards payment of membership of club even though there is no material on record to substantiate that the expenditure is commercially expedient for the business of the assessee as required by the provisions of section 37(1) of the Income-tax Act ? (3) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was legally justified in deleting the addition of Rs. 34,09,937 on account of bad debts in the absence of any efforts for the realization of amount in the light of the provisions contained in section 36(2) read with section 36(1)(vii) of the Income-tax Act without contemplation of subsequent realization ? (4) Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was legally justified in directing the Assessing Officer to allow the claim of amount of Rs. 19,01,035 under section 43B of the Income-tax Act without appreciating the material available on record ?
(2.) The appellant is a public company. It is engaged in the business of manufacture and sale of photo copiers and toner, etc.
(3.) The counsel for both sides fairly admitted that questions Nos. (1) and (2) involved in the present appeal are covered by the decision of this court in the case of assessee itself in Income-tax Appeal No. 225 of 1999 (CIT v. Modi Xerox Ltd.) decided on May 14, 2009.;