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2018 (11) TMI 1255 - HC - Income TaxAddition u/s 80IA(10) read with Section 80IC (7) - no business transacted - addition made on agreed basis in the preceding assessment years though no business had been transacted between the appellant and his alleged sister concern - principle of res judicata - Held that:- It is not in dispute that the reason assigned by the Assessing Officer in applying the provisions of Section 80IA (10) of the Act, is based only on an admission made by the assessee in relation to the two preceding assessment years i.e. 2006-07 and 2007-08. Well, in our considered view, about which there cannot be a dispute, assessment of each year is required to be independently carried out on the basis of material before the AO. The authorities below failed to consider compliance of essential ingredients required for invocation of the said provisions. AO as also other authorities proceeded on the presumption that since in the preceding years the assessee admitted deduction to the extent of 10%, hence, in future also assessee would continue to be bound by the same. This, in our considered view, is not a reasonable approach adopted by the authorities, for each case of the assessee has to be considered independent of the each assessment year and not on the basis of assessment carried out in the preceding year. The approach adopted by the authorities below is erroneous and perverse - Remand the matter back to the Assessing Officer for consideration afresh.
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