Commissioner Of Income Tax Ii, Ludhiana v. M/S Hero Cycles Limited, Ludhiana

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITA No.157 of 2010 Date of decision: 23.7.2010 Commissioner of Income Tax II, Ludhiana -----Appellant Vs. M/s Hero Cycles Limited, Ludhiana ----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON’BLE MR. JUSTICE RAJESH BINDAL Present:-Mr. Vivek Sethi, Advocate for the revenue. Adarsh Kumar Goel,J. This appeal has been filed by the revenue under section 260Aof the Income Tax Act, 1961 against order dated 20.2.2009 passed by theIncome Tax Appellate Tribunal, Chandigarh, in ITA No.899/Chad/2008, forassessment year 2005-06, proposing to raise following substantial questionsof law:- “i) Whether on the facts and in law, the Hon’ble ITATwas legally justified in deleting the disallowance ofRs.4,05,23,475/- under section 14A of the Income TaxAct, 1961 by ignoring the evidence relied on by theAssessing Officer and the judgment of Hon’ble Punjaband Haryana Court in the case of M/s AbhishekIndustries Limited in ITA No.110 of 2005? ii) Whether on the facts and in law, the Hon’ble ITATwas legally justified in deleting the disallowance of Rs.4,05,23,475/- under section 14A of the Income TaxAct, 1961 by holding that a clear nexus has not beenestablished when there is no such requirement to provethe nexus as per the provisions of law?” Learned counsel for the revenue fairly states that the issuesraised in this appeal are covered against the revenue by order of this Courtdated 4.11.2009 in the case of the assessee in ITA No.331 of 2009 (CIT IIv. M/s Hero Cycles Limited) for the assessment year 2004-05. In view of above, this appeal is dismissed. (Adarsh Kumar Goel) Judge July 23, 2010‘gs’ (Rajesh Bindal) Judge