2007 (7) TMI 251

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....993-94 and 1994-95. The assessees are in the business of purchase and sale of IMFL products. The assessees had shown as if they had purchased the packing materials biz bottles etc., had given it to M/s. Mcdowell and Company, got the liquor filled and then sold them. For the assessment years 1993-94 and 1994-95, the assessees claimed deduction of the cost towards the packing materials for IMFL. The Assessing Officer, finding that the packing materials were readily available in the market at a far lower prices, the principal of the assessee companies had purchased the packing materials at a far lower price, the cost of packing material claimed by the group company Balaji Distilleries was far lower than the claim of the assessees, the assessee....

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....lowing the inflated expenditure as a deduction?" 4. It is not in dispute that both the assessees and the Revenue agreed before the Income-tax Appellate Tribunal that the issue involved in these appeals had already been decided against the Revenue and in favour of the assessees by the Tribunal by order dated 18.3.1997 made in I.T.A. No.2189/Mds/1995 and the same also had reached finality. Unfortunately, Mr. J. Narayanasamy, learned standing counsel appearing for the Revenue even today is not in a position to state whether the earlier order of the Tribunal had been reversed.  5. That apart, on facts, we find that it was not for the Revenue to question the decision of the assessee to purchase the goods from a particular concern unless ....