2012 (12) TMI 459

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....e Tribunal, Lucknow dated 29.10.2004, passed in Income Tax Appeal No. 2441/Allahabad/1995 by which the appeal filed by the Revenue has been allowed and the matter has been remanded to the Assessing Officer to decide the case afresh. The appellant proposed the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal was justified in setting aside the order of the Commissioner of Income tax (Appeals)? 2. Whether in the facts and circumstances of the case, the learned Income Tax Appellate Tribunal is justified in setting aside the order of the Commissioner of Income tax (Appeals) without reverting and considering the reasons given by the aforesaid aut....

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....e Assessing Officer, the assessee produced correspondence folder of the above three dealers regarding supply of stocks relating to the sale of cement during the assessment year and payment of commission which were also corroborated from the bank accounts and assessment orders of the sub-distributors. However, the Assessing Officer through it's letter required the assessee to explain the commercial expediency of the business, need of making payment of the commission to sub-distributors and work done/services rendered by the sub-distributors. 4. The Assessing Officer by it's order dated 31.01.1995 held that the assessee had failed to prove the work done/services rendered by the sub-distributors as such he disallowed the deduction of the am....

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....e amount which was actually paid by the assessee to sub-distributors. Appointment of sub-distributors, supply of the stock of cement to them, sale of the cement by them and payment of the commission made by the assessee to them was proved before the Assessing Officer. All these evidence were on record. The Commissioner of Income Tax (Appeals) after considering all these materials as well as the fact that in the previous years, deduction of the amount of the commission to the sub-distributors were allowed by Income Tax Appellate Tribunal, allowed the appeal of the assessee. Income Tax Appellate Tribunal has illegally set aside the judgment of Commissioner of Income Tax (Appeals) without considering the reasons recorded by Commissioner ....