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2021 (1) TMI 396 - AT - Income TaxRevision u/s 263 - interest payment to the foreign banks disallowed - similar show cause notice under section 263 was issued by learned PCIT for three subsequent assessment years - interest expenses have been incurred by assessee in the form of payment of interest on borrowings from foreign banks for the purpose of making investment in share capital of subsidiary companies outside India and assessee has wrongly claimed this amount as an item of expenditure under section 57(iii) and that assessing officer has wrongly allowed such interest expenditure - HELD THAT:- When the show cause notice under section 263 on similar ground for revising the assessment order for assessment year 2009-10 has been set aside by High Court and by accepting the order of High Court similar revision proceedings initiated on similar show cause notice for three subsequent assessment years, has already been dropped by revenue, therefore the issues raised in the present appeal is squarely covered in favour of assessee. The contention of revenue that the decision of Directorate of Income tax (L& R), CBDT or Principal CIT is not binding on Tribunal is fair that the decisions of Directorate of Income tax (L& R), CBDT or Principal CIT is not binding on Tribunal, however, those decision are binding on Principal CIT and learned DR of revenue. Once, the order of High Court on identical issues for assessment year 2009-10 is accepted by higher authorities of revenue, now it is not open for learned DR for revenue or to learned PCIT to deviate from such decisions. Thus, in our view the contention of learned DR is misplaced. - Decided in favour of assessee.
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