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2018 (2) TMI 1637 - AT - Income TaxDisallowance of export commission - assessee has failed to substantiate its claim that the services were rendered by the commission agent Mrs. Marjan V. Modaress. Who was the wife of the Importer - business expediency of payment of commission - CIT-A deleted the addition - Held that:- Though principle of res-judicata does not strictly apply on Income Tax proceedings, yet principle of consistency demands that if any expenditure is allowed in the preceding and the succeeding assessment years on same set of facts, the expenditure cannot be disallowed for the intervening period. A perusal of comparative analysis of export turnover in the past two assessment years show that after appointment of commission agent, the export turnover of the assessee in terms of volume and Revenue has substantially increased. Thus, the benefit of appointment of commission agent to the assessee is apparent from the records itself. It is prerogative of the assessee to decide, whether to appoint a commission agent or not and the manner in which business is to be conducted. It is a well settled law that the Assessing Officer cannot step into the shoes of assessee and decide business expediency of expenditure. - Decided in favour of assessee
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