Tuesday 21 August 2012

In fresh assessment passed pursuant to remand by ITAT, assessee cannot be worse off than what he was in the original assessment order

Kellogg India Pvt. Ltd vs. ACIT (ITAT Mumbai)



The AO passed a s. 143(3) assessment order in which he disallowance 50% of the expenditure on an ad-hoc basis. This was reduced to 25% by the CIT (A). On further appeal by the assessee, the Tribunal set aside the matter to the AO to examine the issue afresh. In the second round of appeal, the AO disallowed 100% of the expenditure on the ground that the assessee had already claimed the same expense under some other head and that there was a claim for double deduction. This was upheld by the CIT(A). Before the Tribunal, the assessee argued that once a matter has been set aside by the Tribunal, the assessee cannot be put into a worse situation than what it was at the time of original assessment. HELD by the Tribunal

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