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2010 (10) TMI 732 - AT - Income TaxRevision u/s 263 - Disallowance u/s 40(a)(ia) - whether the conduct of the Addl. CIT in issuing the direction under S.144A at the particular juncture, confirming the disallowance of trade scheme expenditure for immediately preceding two assessment years and when further appeals by the assessee on the said issue were pending before the Tribunal, is justifiable on any criteria - It was precisely for the reason that the evidence was not properly appreciated by the Assessing Officer and the CIT(A), the assessee exercised a remedy which was available statutorily - The lower authorities have not brought any record to establish the falsity of the assessee’s claim with regard to the services rendered by the marketing agents in question - It is evident from the material available on record that as claimed by the assessee, corresponding expenditure claimed by the assessee in the earlier as well as succeeding years, except ay 2004-05, have been allowed - Decided in the favour of assessee Regarding Revision - There is no merit in the contention of the Revenue that this Tribunal in the order for the earlier years has not solely relied on the directions given under S.144A for the year under appeal - when the Assessing Officer as well as the Addl. CIT who gave directions under S.144A, have applied their mind to a particular issue, it cannot be said that the assessment order is either erroneous or prejudicial to the interests of the Revenue when it is in accordance with the earlier years order of the Tribunal on similar issue - In the present case, the Order of the Tribunal in assessee own case in earlier years which is delivered on similar set facts is binding on authorities below and they cannot ignore it either in initiating a proceeding or deciding on the rights involved in such proceeding - This defect cannot be cured by first carrying the revision and then granting the opportunity to the assessee to respond to the issues raised before the assessing officer during the course of fresh assessment - Decided in the favour of assessee
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