Iapl/679/2007 Of Commissioner Of Income Tax Ghaziabad And Another v. M/S Micromatic Grinding Technolgies Ltd

Hon'ble Bharati Sapru,J.Hon'ble Neeraj Tiwari,J. Heard Sri Ashish Agrawal learned counsel for therevenue and Sri Nikhil Agarwal learned counsel for therespondent assessee. This is an appeal under section 260A of the Income TaxAct, 1961 filed by the revenue against the order of thetribunal dated 31.1.2007. The questions of law referred to in this appeal are asunder: "1.Whether on facts and circumstances, the Hon'ble ITAT was legally justified in holding thatno fault can be found in the order of Ldt.CIT (A), ignoring the fact that there was mutualaccommodation through payment of sales commission and the legal veil created to defraudrevenue. The decision on Mc Dowell Company announced by the Apex Court is equallyapplicable in this case. 2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified inholding the expenditure incurred on foreign travelling as justified by Mr. Dhand ignoring thefact that the A.O. had sufficient material to establish that the payment on foreign travellingwas not allowable as the same was met in cash and were that of personal nature." The present proceedings arises from a regularassessment proceedings. This very issue has beendecided by this Court between inter parties in IncomeTax Appeal no.100 of 2003, on 31.1.2017 reported in(2017) 392 ITR 268 (All) by which this court has heldthat provision under section 263 of the Income Tax Actwas not attracted as no income had escaped taxationand no prejudice is caused to the revenue. Since thefacts and circumstances being the same, this appeal isalso decided in the same terms. The questions of lawreferred to are answered in favour of the assessee andagainst the revenue. The appeal is thus dismissed. No costs.