CIT Vs. GEMI MOTORS INDIA LTD.

JUDGEMENT

(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 20.8.2010, passed by the Income Tax Appellate Tribunal Delhi Bench C, New Delhi (in short "the Tribunal") in ITA No. 3050/Del/2008, relating to the assessment year 2002-03. The following substantial questions of law have been claimed for determination of this Court:

(2.) The facts, in brief, necessary for adjudication as narrated in the appeal, are that the respondent-assessee filed return for the assessment year 2002-03 on 31.12.2002, declaring income of Rs. 17,97,99,180/-. The assessment was, however, completed on 30.3.2005 vide order passed under Section 143(3) of the Act at an income of Rs. 19,59,12,430/- wherein certain additions and disallowances were made by the assessing officer.

(3.) The assessee preferred appeal before the Commissioner of Income-tax (Appeals) (in short "CIT(A)"). The assessee was granted relief by the CIT(A) vide order dated 31.7.2008 of an amount of Rs. 15,28,846/-. The disallowance made by the assessing officer of an amount of Rs. 9,28,512/- on account of staff welfare expenses was restricted to Rs. 1,00,000/- and accordingly, addition of an amount of Rs. 8,28,512/- was deleted. The CIT(A) restricted disallowance under the head Sales and Business Promotion to Rs. 1,00,000/- and deleted balance disallowance of Rs. 3,31,539/-. The CIT(A) also deleted the addition of Rs. 3,62,175/- that had been made by the assessing officer after disallowing the expenditure debited towards Vehicle and Conveyance expenditure and Residential and mobile phone expenses.