IN THE HIGH COURT OF DELHI AT NEW DELHI 
 13. 
 . 
         ITA 598/2006  
 . 
 COMMISSIONER OF INCOME TAX      ..... Appellant 
 Through Ms.P.L.Bansal, Advocate. 
 . 
 versus 
 . 
 . 
 ESCORTS FINANCE LTD             ..... Respondent 
 Through Mr.R.M.Mehta, Advocate. 
 . 
 . 
 CORAM: 
 HON'BLE MR. JUSTICE VIKRAMAJIT SEN 
 HON'BLE DR. JUSTICE S. MURALIDHAR 
 . 
 . 
 O R D E R 
                               28.11.2006 
 Admit. 
 Following substantial questions of law arise for consideration: 
 ?1.       Whether the Tribunal was justified in law in deleting the addition of 
 Rs.3,38,30,000/- made on account of provisions debited by the assessee in the 
 PandL A/c for doubtful debts and diminution in value of re-possessed stock by 
 disregarding the provisions of Section 43D and 36(1)(viia) of the Act? 
 . 
 2.       Whether the policy directions issued by RBI to finance companies under 
 the provisions of Reserve Bank of India Act, 1934 would have an overriding 
 effect over the provisions of Income Tax Act,1961? 
 . 
 3.       Whether the Tribunal was justified in law in deleting the disallowance 
 of Rs.58,86,433/- made by the CIT(A) under Section 14A at the Appellate stage 
 holding the same to be beyond his jurisdiction? 
 . 
 4.       Whether in view of Section 14A of the Income Tax Act, ITAT was correct 
 in law in allowing deduction of expenditure incurred by the assessee in relation 
 . 
 . 
 to dividend income which admittedly does not form part of total income under the 
 Act? 
 . 
 5.       Whether the Tribunal has correctly interpreted the provisions contained 
 in Section 14A of the Income Tax Act while deciding the issue and controversy 
 before it?? 
 . 
 . 
 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