INDRA RANI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal has been filed by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 28.2.2011 passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal"), in ITA No. 398/Chandi/2009 relating to the assessment year 2005-06, claiming the following substantial questions of law:-

(2.) Briefly stated, the facts necessary for adjudication of controversy involved as narrated in the appeal are that the assessee is a commission agent and trader in sponge iron. The assessee filed a return declaring an income of Rs.4,78,552/- on 31.10.2005 for the assessment year 2005-06 claiming deduction of Rs.19,50,052/- on account of rebate and discount. The return was processed under Section 143(1) of the Act and the same was selected for scrutiny.

(3.) The claim of bad debt of Rs.2,20,000/- relating to M/s Mega Alloys Ltd., Jalandhar was not allowed for the reasons enumerated as under:-