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2011 (8) TMI 519 - HC - Income TaxRevision u/s 263 - Assessing Officer in course of the assessment proceedings obtained full details of the said expenditure incurred on account of VRS and after considering all the facts and circumstances allowed deduction for the same - Tribunal held that the Assessing Officer was duty bound to follow the instruction of the Central Board of Direct Taxes and non-compliance of such instructions amounted to dereliction of duty and subordination - Commissioner of Income tax simply by taking aid of a circular which says that ex-gratia payment made for gaining enduring benefit or voluntary retirement scheme should be prima facie treated as capital expenditure sought to reopen the assessment by invoking Section 263 of the Act notwithstanding the fact that the said circular is in conflict with the view of this High Court which is binding upon the Assessing Officer - Supreme Court in the case of Empire Jute Co. Ltd. vs. CIT, reported in (1980 -TMI - 5837 - SUPREME Court) wherein it was held that any advantage of enduring benefit in the capital field was acquired by the assessee in purchasing loom hours and the test of enduring benefit cannot help the Revenue - Decided in favor of the assessee
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