The respondent-assessee is carrying on the business as clearing and forwarding agent at New Mangalore Port Trust (for brevity ‘NMPT’). The dispute in the present appeal is for the assessment year 2006-07 in which year the assessee had declared its total income as Rs.1,11,03,920/-. By the assessment order dated 28.11.2008, the Assessing Authority has disallowed 30% of the speed money and consequently a sum of Rs.67,59,784/- was added to the income of the respondent-assessee. Challenging the said order, the respondent-assessee filed an appeal before the Commissioner of Income Tax (Appeals), Mangalore, which was allowed vide its order dated 21.10.2009. Being aggrieved, the revenue filed an appeal against the said order of the CIT (Appeals), which was dismissed by the Tribunal vide its order dated 30.07.2010. Aggrieved by the said orders, this appeal has been filed by the Department under Section 260A of the Income Tax Act, 1961.

2. We have heard Sri E.I. Sanmathi, learned counsel appearing for the appellants Department as well as Sri S. Parathasarathi, learned counsel appearing for the respondent-assessee and perused the record.

3. The submission of the learned counsel for