The Hon'ble ITAT , Rajkot has taken different view on the very controversial subject. The issue may affect large no. of such cases.
It is also seen from the facts of the case that all the expenses are paid during the year. In such situation only confusion which could be drawn from the said decision is why the Hon'ble Tribunal has not followed the decision of Special Bench in the case of Merilyn Shipping & Transports v/s Addl. CIT 136 ITD 23 ( Vis. SB) . As from the facts it could be gathered that most of expenses are paid by the assessee and there is no payable or outstanding.
In my opinion , if the Rajkot Bench has followed special decision in any other cases, it would be a good case to argue by filling Misc. Petition and one could take the benefit of the decision of special bench.
It is also seen from the facts of the case that all the expenses are paid during the year. In such situation only confusion which could be drawn from the said decision is why the Hon'ble Tribunal has not followed the decision of Special Bench in the case of Merilyn Shipping & Transports v/s Addl. CIT 136 ITD 23 ( Vis. SB) . As from the facts it could be gathered that most of expenses are paid by the assessee and there is no payable or outstanding.
In my opinion , if the Rajkot Bench has followed special decision in any other cases, it would be a good case to argue by filling Misc. Petition and one could take the benefit of the decision of special bench.