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2015 (4) TMI 867 - AT - Income TaxDis-allowance of commission payment - Dis-allowance of rent on DG set - Held that:- The Revenue had filed an appeal against the order of ld.CIT(A) in AY 2006-07 in ITA No.261/Ahd/2010 [2012 (11) TMI 160 - ITAT, AHMEDABAD], wherein identical ground raised by the Revenue was allowed for statistical purposes by restoring the issue back to the file of AO for decision afresh. The facts are identical in this year as well and the ld.CIT(A) has followed the order of his predecessor which has been set aside by the Coordinate Bench.Therefore, this ground of Revenue’s appeal is also restored to the file of AO to decide it afresh in the light of the direction given by the Coordinate Bench in ITA No.261/Ahd/2010 [2012 (11) TMI 160 - ITAT, AHMEDABAD]. Thus, ground Nos.1 & 1.2 of Revenue’s appeal are allowed for statistical purposes. The Assessing Officer has thought it proper to decide the percentage of disallowance on the basis of the expected annual return on such investment. We, however, clarify that in no circumstance the disallowance as made by the Assessing Officer should be enhanced while we are restoring this ground back to the stage of the Assessing Officer with the direction that the assessee shall place on record the basic requirement of business necessity for taking on hire the impugned DG set. With these remarks this ground is restored back to the file of Assessing Officer for De novo decision. Therefore, for this year also, this issue is also restored to the file of AO for decision afresh. The AO is hereby directed to decide this issue in the light of the direction by the Coordinate Bench in ITA No.261/Ahd/2010 [2012 (11) TMI 160 - ITAT, AHMEDABAD]. Thus, ground Nos.2 & 2.2 of Revenue’s appeal are allowed for statistical purposes. - Decided partly in favour of revenue.
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