TMI Blog2009 (11) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... eration to dealers. 3. The AO restricted the claim of deduction of remuneration paid by the assessee to its dealers at 60% of the total commission receipts amounting to ₹ 5,39,93,482/-. The balance payment of remuneration , amounting to ₹ 89,98,913/- was disallowed on the basis that the payment was unreasonable and excessive. 4. Before the CIT(A), the assessee placed reliance on the first appellate order for A.Y. 2005-06, wherein the CIT(A) had observed as follows: 4.4. I have considered the submissions made by the learned AR, I have perused the text of the judgments on which the AR relied. Ratios of these judgments are applicable to the facts of the instant case as the AO has no where proved that the expenditure had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Y. 2005-06 in assessee s own case, in the impugned order, the learned CIT(A) has directed the AO to delete the addition made. Aggrieved, the department is in appeal. 6. The learned DR, challenging the impugned order, has contended that the learned CIT(A) has failed to consider that the remuneration paid in the earlier years were wrongly compared with that of the year under consideration; that in the initial years, in view of the setting up of the out lets, the payment of remuneration was more and accordingly for the year under consideration, a drastic decline in the payment of remuneration was warranted. The learned DR has drawn our attention to the AO s observation to the effect that for A.Y. 2005-06 the AO had observed that the agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce in the submission of the department that in the initial years, in view of the setting up of the outlets the payment of the remuneration was same and that being so over the years under consideration, a drastic decline in the payment of remuneration was warranted. This has no where been controverted on behalf of the assessee. As such, as agreed to by the parties, the matter needs to be remitted to the file of the AO, to be examined and decided afresh in accordance with law, after affording adequate opportunity of being heard to the assessee. The AO shall deal and decide the issue independent of the comparison with the remuneration paid in the earlier years with that of the year under consideration. We order accordingly. 10. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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