- (1.) This is an income tax appeal under section 260A of the Income Tax Act has been filed by the department against the order of tribunal dated 5.2.2010 for the assessment year 2005-06.
(2.) The questions of law sought to be answered are as under: "1. Whether on the facts and in the circumstances of the case, the ITAT has erred in law in holding that the CIT's order directing the AO to obtain the addresses of sundry creditors and verify them is not according to the parameters and principles governing the exercise of powers by the Commissioner under the provisions of section 263 of the Act The view taken by ITAT is not justified in the light of the parameter quoted by it on page 12 of its order that an order is erroneous if passed" without application of mind, that is, is stereotyped in asmuch as the Assessing officer accepts what is stated in the return of the assessee without making any enquiry called for in the circumstances of the case, i.e. proceeds with 'undue haste' and also in view of the decision of Hon'ble Calcultta High court in the case of CIT vs. Active Trade P. Ltd., 1995 214 ITR 583. 2.Whether on the facts and in the circumstances of the case, the ITAT is justified in law in setting aside the order of the CIT on the issue about verification of sundry creditors and in cancelling the part of the order on the issue about the sale of land and valuation of the stock at the low rates"
(3.) We have heard Sri Ashish Agarwal for the department and have perused the record.;