2021 (1) TMI 604

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....Income Tax (Appeals) CIT(A) is contrary to law, facts and circumstances of the case and against the principles of natural justice. 2. Fee and Service charges paid to Saint Gobain Placo SAS 2.1 The CIT(A) erred in confirming the disallowance of Rs. 3,15,73,894/- (Rs. 2,40,57,443/- plus Rs. 75,16,451/-) towards fee and service charges paid to Saint-Gobain Placo SAS ('SG Placo") without appreciating that it is a revenue expenditure incurred for the purpose of business and allowable under section 37(I) of the Act. 2.2 The CIT(A) erred in relying on the order of the CIT(A) for AY 2008-09 to decide on the issues in appeal without appreciating that the Income Tax Appellate Tribunal vide order dated 9 December 2015 in....

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....e deduction allowed by the AO consequent to the disallowances made in the earlier years." 3. Brief facts of the case are that the assessee company is engaged in the business of manufacturing of various construction products like gypsum plasterboards, ceiling tiles, jointing and finishing products filed its return of income for the assessment year 2012-13 on 30.11.2012 declaring Nil taxable income after setting off brought forward unabsorbed depreciation under the normal provisions of the Act. The assessee has computed book profit under section 115JB of the Act at Rs. 24,97,22,737/-. The case was taken up for scrutiny and during the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed fees and serv....

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....) and Saint GobainPlaco SAS, France (SG Placo) for the assessment year 2008-09 and findings recorded for assessment year 2008-09 would have bearing on the present appeal. 6. The learned DR, on the other hand, fairly accepted that issue involved in the present appeal is linked to disallowances made by Assessing Officer for assessment year 2008-09 and the Tribunal has set aside appeal filed by assessee for assessment year 2008-09 to the file of the learned CIT(A) to decide issue in accordance with law, after considering additional evidences filed by the assessee. Therefore, this appeal also needs to be set aside to file of learned CIT(A) to decide in accordance with findings or outcome of the appeal filed by the assessee for assessment yea....