IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. 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 GOEL HON’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 260A of the Income Tax Act, 1961 against order dated 20.2.2009 passed by the Income Tax Appellate Tribunal, Chandigarh, in ITA No.899/Chad/2008, for assessment year 2005-06, proposing to raise following substantial questions of law:- “i) Whether on the facts and in law, the Hon’ble ITAT was legally justified in deleting the disallowance of Rs.4,05,23,475/- under section 14A of the Income Tax Act, 1961 by ignoring the evidence relied on by the Assessing Officer and the judgment of Hon’ble Punjab and Haryana Court in the case of M/s Abhishek Industries Limited in ITA No.110 of 2005? ii) Whether on the facts and in law, the Hon’ble ITAT was legally justified in deleting the disallowance of ITA No.157 of 2010 Rs.4,05,23,475/- under section 14A of the Income Tax Act, 1961 by holding that a clear nexus has not been established when there is no such requirement to prove the nexus as per the provisions of law?” Learned counsel for the revenue fairly states that the issues raised in this appeal are covered against the revenue by order of this Court dated 4.11.2009 in the case of the assessee in ITA No.331 of 2009 (CIT II v. 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 (Rajesh Bindal) ‘gs’ Judge 2