COMMISSIONER OF INCOME-TAX Vs. FIVE STAR HOLIDAYS

JUDGEMENT

(1.) REVENUE is aggrieved by an order dated January 6, 2005, passed by the Income -tax Appellate Tribunal, Delhi Bench 'C', in I.T.A. No. 5278/Del/96 relevant for the block assessment years 1995 -96 and 1996 -97.

(2.) FIRST issue urged by the Revenue in the present appeal is with regard to payment of a sum of Rs. 93,10,418 to one Ms. Magda towards consultancy fees by the assessed out of which an amount of Rs. 66,07,193 was disallowed by the Assessing Officer but allowed by the Income -tax Appellate Tribunal.

(3.) THE assessed appealed to the Tribunal which in the impugned order accepted the contention of the assessed. The Tribunal has noted in its order that the same Assessing Officer had passed an assessment order in respect of Ms. Magda on the same date as in the case of the assessed. In the case of Ms. Magda, the Assessing Officer accepted the fact that she had been paid an amount of Rs. 93,10,418 but in the case of the assessed, the amount of Rs. 66,07,193 was disallowed and added back to the income of the assessed as undisclosed income. The Tribunal noted that under these circumstances, the order passed by the Assessing Officer in the case of the assessed was not sustainable and was, in fact, perverse.