ITAT is bound to deal with judgment relied upon and cited by an assessee:

AO made addition in respect of bogus purchases/sales which was confirmed by CIT(A) as well as ITAT. On further appeal, Hon’ble High Court observed that ITAT, while dismissing assessee’s appeal, had neither considered nor dealt with the judgment in the case of “CIT vs. President Industries – 258 ITR 654” which was cited by the assesse and on which, assessee had placed heavy reliance. Hon’ble High Court held that whenever any decision has been relied upon and/or cited by any assessee, the concerned authority /ITAT is bound to consider and deal with the same and opine as to whether the same shall be applicable or not. Accordingly, the matter was remanded to ITAT with a direction to decide the issue after considering the decision in the case of CIT vs. President as relied upon by the assessee.

[Dattani And Co. vs. ITO – Tax Appeal No.847-849 of 2013]