V. B. GUPTA, J. ( 1 ) THIS appeal has been filed by the Revenue under Section 260 A of the income Tax Act, 1961 (for short as 'act') against the order dated 5th September, 2005 passed by Income Tax Appellate Tribunal (in short as 'tribunal') in ITA no. 1260/del/2002 for the assessment year 1994-95. ( 2 ) VIDE impugned order, the Tribunal allowed deduction of Rs. 3,58,563/- under Section 36 (1) (vii) of the Act on account of export incentives which became irrecoverable during the year under consideration. The Tribunal also allowed the liability of Rs. 14,35,072/- payable to M/s. Old Village Industries Ltd. by inter alia holding that there was no good reason brought on record by the assessing Officer to doubt genuineness of the liability. ( 3 ) BRIEF facts of the case are that Assessee in three assessment years. e. 1989-90 to 1991-92 credited a sum of Rs. 5,80,527/- in its Profit and Loss a/c on the basis of mercantile system of accounting. However, the Assessee received a sum of Rs. 2,21,964/- only against such provision. The balance of rs. 3,58,563/- not received by him was considered as irrecoverable and the same stood written off for the year under consideration. The Assessing Officer disallowed the claim as the Assessee gave different explanation and no document was filed in support of the claim. ( 4 ) THE Commissioner of Income Tax (Appeal) allowed the claim of the assessee under Section 36 (1) (vii) of the Act. 5. Further, the Assessee had to recover a sum of Rs. 5,64,928/- from its associate concern m/s. Ovil. Since the Assessee had to execute certain export orders, it made a request to the said concern to give payment of Rs. 20 lakhs. The request of the assessee was acted upon by M/s. Ovil and the payment was remitted by M/s. Apollo international Enterprises Pvt. Ltd. The Assessee credited the amount of M/s. Ovil for the amount received from M/s. Apollo International Enterprises Pvt. Ltd. The Assessing Officer was not satisfied about the genuineness of the transaction and as such made the addition of Rs. 14,35,072/- by holding that the liability remained unproved. ( 5 ) ON appeal, the Commissioner of Income Tax (Appeal) deleted the addition made by the Assessing Officer. ( 6 ) AS far as deduction of Rs. 14,35,072/- by holding that the liability remained unproved. ( 5 ) ON appeal, the Commissioner of Income Tax (Appeal) deleted the addition made by the Assessing Officer. ( 6 ) AS far as deduction of Rs. 3,58,563/- is concerned, the Tribunal held that the Assessee has taken the aforesaid amount as part of its income of earlier years and this amount which became irrecoverable, stood written off, the essentials of Section 36 (1) (vii) stood satisfied and upheld the decision of the commissioner of Income Tax (Appeal ). ( 7 ) WE find no infirmity in the reasoning given by the Tribunal and as such no substantial question of law with regard to the deduction of Rs. 3,58,563/- is involved and appeal filed by the Revenue on this issue is dismissed. ( 8 ) WITH regard to the issue of deleting the addition of Rs. 14,35,072/-, we are of the opinion that following substantial question of law arises for our consideration. " (1) Whether the Tribunal was justified in law in deleting the addition of rs. 14,35,072/- made by the Assessing Officer under Section 68 of the Act on account of unexplained liability". Paper books be filed in accordance with the High Court Rules.