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2014 (11) TMI 1218 - AT - Income TaxRevision u/s 263 - CIT in restricting the partners’ remuneration u/s 40(b) by not treating the surrendered amount as business income - disallowance out of claimed remuneration made deserves to be deleted - HELD THAT:- We find that, in the instant case, CIT(A) vide its order dated 21.10.2010 has already decided the issue which was considered by the CIT in the impugned order purportedly passed u/s 263 - As the order of the AO had already merged with the order of the CIT(A) in respect of the issue of head under which income disclosed in the course of the survey is assessable and consequently allowance of remuneration to partners, in our considered view, the CIT had no justification to decide the very same issue again u/s 263 of the Act. Therefore, the impugned order passed u/s 263 is bad in law and without jurisdiction. We, therefore, cancel the impugned order passed u/s 263 of the Act and allow the appeal of the assessee.
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