- (1.) This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 26.5.2015 (Annexure A-III) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 757/Chd/2014, for the assessment year 2008-09, claiming the following substantial question of law:- Whether upon facts and circumstances of the case, the Hon'ble ITAT was right in law, in upholding the decision of the Ld. CIT(A) in deleting the addition of Rs.1,27,49,983/- made by the Assessing Officer on account of premium paid on the life of partners and debited to the profit and loss account as Keyman Insurance Premium of the assessee firm
(2.) Put shortly, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee filed its return of income on 21.10.2008 for the assessment year 2008-09 at nil income. The said return was processed under Section 143(1) of the Act on 13.3.2010. Subsequently, the case was selected for scrutiny and notice under Section 143(2) of the Act was issued on 14.9.2009. Subsequently, notice under Section 142(1) of the Act was issued on 7.1.2010 along with preliminary questionnaire and again notice dated 28.4.2010 under Section 142(1) of the Act along with detailed questionnaire was issued. The Assessing Officer vide order dated 3.12.2010 (Annexure A-1) framed the assessment under Section 143(3) of the Act at nil income and made the additions of Rs. 21,52,812/- and Rs. 1,27,49,983/- on account of disallowance of excess depreciation and disallowance of premium paid on 'Keyman Insurance Policy' taken on life of the partners. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity "the CIT(A)"]. The CIT(A) vide order dated 24.6.2014 (Annexure A-II) allowed the appeal and deleted the additions made by the Assessing Officer. Against the order, Annexure A-II, the revenue filed an appeal before the Tribunal who vide order dated 26.5.2015 (Annexure A-III) upheld the order of the CIT(A) and dismissed the appeal. Hence, the present appeal by the revenue.
(3.) We have heard learned counsel for the revenue.;