- (1.) Heard learned counsel for the parties.
(2.) This appeal under Section 260 A of the Income Tax Act, 1961 (hereinafter referred to as the Act) has been filed by the revenue against the order of the Income Tax Appellate Tribunal, Agra Bench, Agra dated 13.04.2012 for the Assessment Year 2005-06. By that common order, the Tribunal has decided the revenue's appeal being ITA No. 5/Agr/2011 and the assessee's appeal being ITA No. 460/Agr/2010. The Tribunal has dismissed revenue's appeal and allowed the assessee's appeal. The present appeal has been filed on the following questions of law: "(1) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law to hold that the AO had no occupation to invoke Section 145(3)? (2) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in interpreting the provisions of Section 68 in the way it did in this present case? (3) Whether the ITAT was justified in deleting the addition made by the AO u/S 68 solely on the grounds that the AO has accepted the claim of the Assessee in the remand report? (4) Whether the ITAT had gone beyond its jurisdiction when it deleted the additions made by the A.O. as it amounted to curbing the powers of the A.O. granted by the Legislature u/S 68? (5) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law to hold that whatever reasons given by the AO for rejecting the books results of the assessee are not reasonable? (6) Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in law in deleting the addition made by the AO at Rs. 62.95 Lakh by rejecting the books of account under Section 145 of the I.T.Act, 1961? (7) Whether on the facts and circumstances of the case, the order of the Hon'ble ITAT may be set aside and that CIT (A) and AO be restored?"
(3.) At the very outset, learned counsel for the revenue states that the instant appeal is being pressed on questions of law nos. 1, 2 and 6 only. While questions no. 1 and 6 relate to addition made to the income of the assessee on account of valuation of closing stock, question no.2 relates to addition made under Section 68 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act').;