TaxTMI 
TaxTMI 
1983 (5) TMI 48
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.... that the original assessments were completed by the ITO allowing the claim of the assessee to deduct Guest House expenses of Rs. 21,429, Rs. 24,345 and Rs. 25,386 during the three years under consideration. Subsequently, the ITO came to hold the view that in view of the decision of the Tribunal relating to the asst. yrs. 1970-71 and 1971-72, the aforesaid expenses relating to the Guest House were not admissible deductions. Hence, he passed the orders u/s 154 of the Act on 30th March, 1979 withdrawing the allowance of the aforesaid amounts during the three years under consideration. 3. The assessee appealed to the CIT (A), and contended that the action of the ITO was not justified. It was pointed out that the Tribunal did hold that the ac....
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....of the Madras High Court in the case of Aruna Sugars Ltd., the accommodation under consideration could not be considered to be in the nature of Guest House. Hence, he cancelled the orders u/s 154 of the Act passed by the ITO for the three years under consideration. 4. Shri G. Krishnan, the ld. representative for the department, urged before us that the ld. CIT(A) erred in his decision. He stated that when the ITO passed the orders u/s 154 of the Act, the decision of the Madras High Court in the case of Aruna Sugars Ltd. was not available to him. Hence in view of the earlier decision of the Tribunal in the case of the assessee, the ITO did find mistakes in the original assessment orders and so, he rectified the same. According to him CIT(A....