- (1.) This appeal under Section 260A of the Income-Tax Act, 1961 (for short ''the Act'') has been filed by the revenue against the order dated 18.11.2009, passed by the Income Tax Appellate Tribunal Delhi, Bench 'G', New Delhi (in short ''the Tribunal'') in ITA No. 2698/Del./2009 relating to the assessment year 2005-06.
(2.) The following substantial questions of law have been claimed for determination of this Court: (i) Whether on the facts and in the circumstances of the case, the learned IT AT was right in law in upholding the order of the learned CIT(A) in deleting the addition of Rs. 5,72,091 made by the Assessing Officer on account of site expenses even though the assessee had failed to discharge its obligation to establish that the expenses were incurred wholly and exclusively for the purpose of the business as provided in section 37(1) of the Income Tax Act, 1961? (ii) Whether on the facts and in the circumstances of the case, the learned ITAT was right in law in upholding the order of the learned CIT(A) in deleting the addition of Rs. 3,60,887 made by the Assessing Officer on account of disallowance out of telephone expenses even though these expenses were not incurred wholly for business purposes and is contrary to the decision of Hon'ble Madras High Court in the cases of Chitram & Co. (P.) Ltd. 191 ITR 96 and Madura Coals Ltd. 263 ITR 241? (iii) Whether on the facts and in the circumstances of the case, the learned ITAT was right in law in upholding the order of the learned CIT(A) in deleting the addition of Rs. 2,63,040 made by the Assessing Officer on account of disallowance out of vehicle running and maintenance expenses even though these expenses were not incurred wholly for business purposes and is contrary to the decision of Hon'ble Madras High Court in the cases of Chitram and Co. (P.) Ltd. 191 ITR 96 and Madura Coats Ltd. 263 ITR 241?
(3.) The facts, in brief, necessary for adjudication as narrated in the appeal, are that the respondent-assessee Company deals in manufacturing and trading of capital goods, viz. dairy, salt, pharmaceuticals plant etc. It filed return for the assessment year in question on 30.10.2005 declaring an income of Rs. 51,52,950. Assessment under Section 143(3) was, however, completed on 19.12.2007 at Rs. 72,46,540 wherein certain additions and disallowances were made by the Assessing Officer.;