COMMISSIONER OF INCOME TAX vs. M/S ESCORTS FINANCE LTD

2006 Admit. Following substantial questions of law arise for consideration: ?1. Whether ITAT was correct in law in deleting the addition of Rs.192.45 lacs made by the Assessing Officer by disallowing write off by the assessee of the income on account of certain debts as per guidelines issued by RBI? .

Whether guidelines issued by RBI would prevail over the statutory provisions of the Income Tax Act in the absence of any specific provision? .

Whether ITAT was correct in law in allowing the deduction of such income accrued to the assessee on certain debts, which had not become irrecoverable and not written off in the books of accounts? . . .

Whether ITAT was correct in law in allowing depreciation to the assessee @ 40% on the vehicles leased out by the assessee? .

Whether ITAT was correct in law in allowing depreciation of Rs.84,61,750/- to the assessee on the assets purchased and leased back to the same parties? .

Whether ITAT was correct in law in holding that the provisions made by the assessee for bad and doubtful debts, provision for diminution in value of investment, lease equalization charges and income reversals as well as transfer from delinquency reserve could not be added to the book profit while calculating taxable income under section 115JA of the Act?? . The Appellant is directed to file Paper book within three months, as per rules. List with ITA Nos.7/02, 408/03 and 1387/2006 in regular course. . . . VIKRAMAJIT SEN, J . . . S. MURALIDHAR, J NOVEMBER 28, 2006 dn