2009 (11) TMI 898

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....n deleting the disallowance of Rs. 89,98,913/- made on account of excessive payment of remuneration 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 Rs. 5,39,93,482/-. The balance payment of remuneration , amounting to Rs. 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 t....

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....appeal is allowed to the appellant."   5. Following his aforesaid order for A.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'....