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2022 (5) TMI 1374 - AT - Income TaxDisallowance(s) of administrative service charges 40A(2)(a)&(b) r.w.s. 37(1) - AO invoking the impugned disallowed for want of a valid service agreement dated 02.02.2005 which was only applicable for a period of seven years - Revenue's case before us is that the assessee had not filed the recipient's computation as well as return(s) coupled with the alleged addendum to the foregoing services agreement and therefore, the impugned disallowance is liable to be upheld - HELD THAT:- We make it clear that the assessee had indeed filed its recipient's tax returns in support of its argument that the impugned Section 40A(2)(a)& (b) disallowance does not survive any more once both these parties stood assessed at the maximum marginal rate in light of the CBDT's age old circular No. 6/P dated 06.07.1968 to this effect. This is in addition to the fact that it has also sought to prove its addendum to the impugned agreement (supra) extending the period of operation thereof covering all the instant three assessment years for the first time only. Faced with this situation, we deem it appropriate to restore the assessee's instant identical first and foremost grievance back to the Assessing Officer for his afresh adjudication as well as necessary factual verification as per law within three effective opportunities of hearing. Ordered accordingly. The assessee's corresponding grounds are treated as allowed for statistical purposes.
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