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2015 (2) TMI 950 - HC - Income TaxDeduction u/s. 36(1)(viii) - revision u/s 263 - ITAT allowing deduction following the decision in the case of Union Bank of India v/s. ACIT [2012 (6) TMI 500 - ITAT MUMBAI] - whether financial corporation are separate and distinct entities different from scheduled banks which are covered by the provisions of Banking Regulation Act as held by revenue? - Held that:- When Revenue challenges the order of the Tribunal which in turn relies upon another decision rendered by it on the same issue, then in cases where the Revenue has accepted the order by not preferring any Appeal against the earlier order, the Revenue should not challenge the subsequent order on the same issue. In case an appeal is preferred from the subsequent order, then the Memo of appeal must indicate the reasons as to why an appeal is being preferred in later case when no appeal was preferred from the earlier order of the Tribunal which has merely been followed in the later case. In any case, the Officer concerned must atleast file an Affidavit before the matter comes up for admission, pointing out distinguishing features in the present case from the earlier case, warranting a different view in case the appeal is being pressed. The absence of this being indicative of nonapplication of mind, does undoubtedly give an opportunity to the Revenue to arbitrarily pick and chose the orders of the Tribunal which they would challenge in the Appeal before the this Court. Uniformity in treatment at the hands of law is a basic premise of Rule of Law. In the facts of the present case, there is no occasion for the CIT to exercise his powers under Section 263 of the Act as the view taken by the Assessing Officer granting deduction under Section 36(1)(viii) to the Respondent Assesseee was a possible view. This possible view is further fortified by the decision of the Tribunal in Union Bank of India (supra) which has also been accepted by the Revenue. Even Explanation to Section 36(1)(viii) of the Act as existing at the relevant time, a Financial Corporation has been defined to include a Public Company and the Government Company.- Decided in favour of assessee.
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