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2014 (5) TMI 851 - HC - Income TaxRemand back made to the AO - Disallowance of Business Promotion Expenses – Held that:- The Tribunal remanded the matter to the Assessing officer to consider this claim as per the facts and materials brought on record and in accordance with law - The explanation given by the assessee for not being able to place the documents earlier on record has been accepted - The technical view taken by the lower authorities is thus corrected – there was no error on the part of the Tribunal when the assessee is given an opportunity, or its order is vitiated by any error of law apparent on the face of record – thus, no substantial question of law arises for consideration – Decided against Revenue. Disallowance of guarantee commission paid to the two Directors – Held that:- Tribunal found that the Accountant of the Company committed a mistake in paying the commission @ 3.51% to the Directors and the assessee conceded before the Tribunal that this was a mistake and the commission has been restricted not 1% as claimed by the Revenue but 1.77% - The total payment, therefore is not more than Rs.10,52,000 - the Tribunal did not commit any error in upholding the limited payment and particularly when it is not found to be unreasonable or excessive – thus, the order of the Tribunal is upheld – Decided against revenue. Disallowance of deduction u/s 80IB of the Act – Held that:- The Tribunal has noted that the AO should have given an opportunity to submit the audit report in the new form - The disallowance is only because the audit report has not been filed by the assessee in the prescribed format - The matter was thus of form and not of substance - All that the Tribunal has permitted is that the audit report be brought on record - The reasons assigned by the assessee are found to be bonafide - If they are not attributing any deliberate or intentional act to the assessee then the Tribunal was justified in allowing the claim - The Tribunal performed its duty as the last fact finding authority and exercising appellate jurisdiction –no substantial question of law arises for consideration - Decided against Revenue.
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