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2013 (5) TMI 532 - AT - Income TaxGrossing up of the expenditure with TDS amount for claiming deduction - Non reimbursable tax paid to Master Cards/Visa Cards included under the head "Operating Expenses" - Assessee claimed that as per the agreement with Visa/Master Cards, the company is required to make payment without deduction of tax - Held that:- As decided in CIT Vs Standard Polygraph Machines Pvt. Ltd (1998 (11) TMI 49 - MADRAS High Court) on identical facts allowed the claim holding that amount paid was only to the discharge of the liability which liability the assessee had taken to pay as part of the agreement entered into. The amount so paid as tax has been held to be the amount payable between the collaborator and the assessee. The Tribunal decided that the amount so paid by the assessee was only in discharge of a liability which it had undertaken in terms of the agreement. Also see S.Takenaka Vs CIT (1998 (9) TMI 55 - KARNATAKA High Court). Respectfully following the orders of the co-ordinate bench decide the grounds raised against the Revenue.
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