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2012 (10) TMI 1128 - ITAT MUMBAIDisallowance of interest paid to related parties u/s 4OA(2)(b)- disallowance of foreign travel expenses - disallowance of motor car expenses to 10% - Claim of deduction u/s 80G first time before CIT(A) in appellate proceedings - Held that:- If assessee is able to establish that the recipient of interest are paying tax at the highest rate on the income then no disallowance is called for u/s 40A(2) - AO is directed to verify the rate of tax at which the recipient of interest have paid tax and if it is equivalent to the rate of tax paid by the assessee then interest is allowed Held that:- The visits of the entire family of the partners of the assessee firm cannot be treated as business visit - expenses on family members who are not partners of the assessee firm, cannot be allowed as business expenditure - AO to disallow the actual expenditure incurred on the foreign travel with respect to the non-partner - Decided against the assessee Held that:- Fringe benefit tax is levied on the expenses incurred by the employer irrespective of whether the same are incurred for official or personal purposes - the expense have to be appropriately allowed as expenses incurred wholly and exclusively for the purpose of business - Decided in favor of assessee Claim of deduction u/s 80G first time before CIT(A) in appellate proceedings - Held that:- Assessee is entitled for deduction under Section 80G @50% - The CIT(A) did not entertain the claim of the assessee since assessee has not claimed it before the AO in the statement of income - AO to consider and decide the claim of the assessee after verification of the relevant facts and records
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