2018 (3) TMI 1801

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....ssing Officer's action of disallowance of deprecation on tenancy rights of Rs. 6,44,920/-. 2. The ld. Commissioner of Income Tax (Appeals) failed to appreciate that tenancy rights were a form of license. Revenues appeal: 3. The grounds of appeal read as under: 1. On the facts and in the circumstances of the case and in law, whether the ld. CIT(A) has erred in deleting the addition made by the A.O. amounting to Rs. 1,49,27,137/- on account of payments made to the legal heirs of the deceased partner and disallowance of payment made to retired partner amounting to Rs. 2,27,70,651/-. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 4. The brief facts o....

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....egard addition of payment to Retired Partner 4. The Ld.CIT(A) erred in confirming addition of payment made to a retired partner of Rs. 3,68,45,176/- in terms of the partnership deed. 5. The Ld.CIT(A) failed to appreciate that such payment was diverted by overriding title. 6. The Ld.CIT(A) was wrong in holding that such payment made to persons other than working partner is not eligible for deduction from income of the firm. 7. The Ld.CIT(A) erred in holding that payment made to person other than working partners and were on the nature of incentive and that this was not an example of diversion of income by overriding title." After discussing the facts of the case and the submissions of the Department and the appellant, the Hon'....

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....#39;s own case wherein the issue was decided against the assessee. Hence, the ld. Commissioner of Income Tax (Appeals) held as under: '6.1 I have carefully considered the facts of the case and the submissions of the appellant. I have also gone through the various decisions relied upon by the A.O. and the Ld. AR. The Hon'ble ITAT vide its order ITA No. 7324 & 1014/Mum/2013 dated 07.10.2015, for A.Ys. 2007-08 and 2009-10 has decided the issue against the appellant. The relevant part of the order is reproduced as below:- "10. Since the Tribunal has consistently decided this issue against the assessee over the years and none of the orders of the Tribunal has been shown to have been either reversed or stayed on appeal, respectfully followi....

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.... and the Commissioner (Appeals) & Tribunal have upheld such disallowance. Therefore, respectfully following the decision of the Hon'ble ITAT, the ground of the appellant is dismissed.' 8. Against the above order, the assessee and Revenue are in cross appeal. 9. We have heard both the counsel and perused the records. It was contended that on the issues hereinabove have already been decided by the ITAT. As regards the assessee's appeal we find the issue of deprecation of tenancy rights has been decided against the assessee by following the ITAT order in assessee's own case. Hence, we do not find any infirmity in the order of the ld. Commissioner of Income Tax (Appeals). Hence, we uphold the same. Hence, the appeal by the assessee stands d....