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The Tax PublishersITA Nos. 6239, 6240, 6161 & 6162/Mum/2016
2021 TaxPub(DT) 0165 (Mum-Trib)INCOME TAX ACT, 1961
Section 37(1)
Following assessee's own case for earlier assessment year, and by applying the principle of consistency there was no case for revenue to disallow 50% of payments made to certain party V, as consultancy fee on ad hoc basis.
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Business expenditure - Allowability - Disallowance of consultancy fee on ad hoc basis -
Assessee was aggrieved by order of CIT(A) only allowing 50% of payments made to certain party V, as consultancy fee on ad hoc basis. Assessee contended that its case was squarely covered by order of Tribunal for assessment year 2009-10 in assessee's own case, wherein the entire payment to V was allowed as a deduction to the assessee. Held: As decided in favour of assessee by earlier assessment year, applying the principle of consistency as has been held by Supreme Court in the case of Radhasaomi Satsang, in allowing such claim to the assessee in earlier as well as in subsequent years, there was absolutely no case made out by the revenue for disallowing this sum during the year under appeal.
Followed:Radhasoami Satsang v. CIT (1992) 193 ITR 321 (SC) : 1992 TaxPub(DT) 858 (SC) and Asstt. CIT v. Tata Sons Ltd. [ITA No.4630/Mum/2016, ITA No.4637/Mum/2016, dt. 7-8-2020].
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08 & 2008-09
IN THE ITAT, MUMBAI BENCH
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