COMMISSIONER OF INCOME TAX-I Vs. KINGS EXPORTS

JUDGEMENT

(1.) THE revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against the order of Income Tax Appellate Tribunal, Chandigarh Bench (B), Chandigarh dated 29.1.2009 passed in ITA No. 980/Chandi/2008 for the assessment year 2005 -06, proposing to raise following substantial question of law:

(2.) THE assessee is engaged in manufacturing and export of engineering goods. The Assessing Officer disallowed claim for bad debts under Section 36(1)(vii) on the ground that the assessee had claimed deductions under Section 80HHC and in such a situation claim for bad debts will be hit by Section 14A of the Act. The CIT(A) partly upheld the claim of the assessee with the following observations:

(3.) WE have heard learned Counsel for the revenue.