- (1.) This order shall dispose of two appeals bearing ITA Nos. 268 and 269 of 2011 as according to learned counsel for the revenue, identical issue is involved therein. For brevity, the facts are being extracted from ITA No. 268 of 2011.
(2.) Ita No. 268 of 2011 has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 30.11.2010 (Annexure-3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 1043/CHD/2010, for the assessment year 2005-06, claiming the following substantial question of law:- Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in upholding the order of CIT(A) dated 18.05.2010, thereby deleting the addition of Rs. 56,48,840/- made by the Assessing Officer on account of disallowance of interest relatable to investment in capital-work-in-progress
(3.) A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee derives income from manufacturing of Hosiery garments and filed its return of income on 31.10.2005 for the assessment year 2005-06 declaring 'nil' income. However, the tax was paid by the assessee under the MAT on book profits of Rs. 24,93,327/- under Section 115JB of the Act. The said return was processed under Section 143(1) of the Act at deemed income. The assessee filed revised return on 8.1.2007 at 'nil' income. The assessment was completed under Section 143(3) of the Act by the Assessing Officer vide order dated 24.12.2007 (Annexure-1) where the Assessing Officer had made the following disallowances:- JUDGEMENT_441_LAWS(P&H)5_2016_1.html;