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2017 (8) TMI 947 - ITAT DELHIDisallowance of expenses incurred towards the two foreign travels - expenses related to business - Held that:- Submissions made by the Ld. AR that the assessee has shown the evidence by way of copy of email from John Abernethie regarding meeting to new business opportunities at Abernethie Trading, USA on 8-9/10/2007 and the other e-mails shows the participation of Rakesh Jindal in respect of future/prospective business with USA. The said evidence was produced before the Assessing Officer as well as before the CIT(A). The said e-mail was addressed to B M Garg by stating initial B M. Also it is clearly mentioned that the parties in the US was communicating for the new business and for new products and range development with Shri Rakesh Jindal who was representing Garg Industries. These documents were though on record not taken into cognizance by both the Revenue authorities. Thus, the travel expenses as related to Rakesh Jindal amounting to ₹ 6,56,593/- has to be considered as the expenses towers the business expansion. TDS u/s 194C - trade fair expenses - obligation to deduct TDS - amount below the threshold limit of TDS specified - Held that:- Hon’ble Delhi High Court in case of CIT Vs. DLF Commercial Project Corporation (2015 (7) TMI 576 - DELHI HIGH COURT) wherein it has been held that obligation to deduct TDS is only with respect to income as amounts paid as reimbursement of expenses do not have the character of income. In-fact, the effective amount paid towards handling charges was only ₹ 4,477/- including taxes which is much below the threshold limit of TDS specified in Section 194C of the Act. Therefore, the Ld. AR’s contention that this amount was not liable to TDS and no disallowance under Section 40(a)(ia) can be made is accepted. Disallowance of certification fees over a period of 5 years - Held that:- CIT(A)’s finding that the CC Certification was valid for 5 years but in the manner which the CIT(A) has directed to allow 20% of the said expenses in each of the 5 years by stating that the expenses are revenue in nature is not proper. If it is Revenue expense then the same should be allowed in full in the year of incurrence even though it provides long term benefit. Once, it is stated that it is a Revenue expenditure the assessee is entitled for the said claim. Therefore, the same is allowable in full in this year even though certification has been provided for 5 years. Appeal of the assessee is allowed.
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