- (1.) This order shall dispose of ITA Nos.680, 730 of 2010 and 288 of 2011. ITA No.680 of 2010 has been filed by the revenue and ITA No.730 of 2010 has been filed by the assessee against the same assessment order dated 24.9.2009, Annexure A.III for the same assessment year i.e. 2005-06 whereas ITA No.288 of 2011 has been filed by the assessee against the order dated 28.2.2011, Annexure A.3 for the assessment year 2006-07. The facts have been extracted from ITA No.680 of 2010.
(2.) Ita No.680 of 2010 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 24.9.2009, Annexure A.III passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'B' Chandigarh (in short, "the Tribunal") in ITA No.1057/CHANDI/2008, for the assessment year 2005-06, claiming following substantial questions of law:- "I. Whether, on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was legally justified in deleting the entire disallowances under section 30(1) without adjudicating on Explanation I to Section 30 II. Whether, on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was legally justified in deleting 50% of the disallowance sustained by the CIT(A) without giving a finding as to what was legally/factually wrong in the order of the CIT(A). The Hon'ble ITAT is the last fact finding authority and is bound to give an order which goes into all the aspects of the case III. Whether, on the facts and in the circumstances of the case and in law, the Hon'ble Income Tax Appellate Tribunal was legally justified in deleting/giving relief of Rs. 7,26,477/- of the quantum amount disallowed by the Assessing Officer under section 36(1)(iii) when factually nothing was brought forward by the assessee that any amount was his own money and therefore is squarely covered by the ratio laid down in M/s Abhishek Industries Limited, 286 ITR 1 -
(3.) The primary issue in ITA No.730 of 2010 at the behest of the assessee is regarding disallowance of interest under Section 36(1)(iii) of the Act for the assessment year 2005-06. The same order has been followed in ITA No.288 of 2011 filed by the assessee for the assessment year 2006-07.;