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2018 (8) TMI 659 - ITAT HYDERABADGenuineness of claim of expenditure - whether PCL has given the Bank Guarantee and not - Held that:- it is noticed that M/s. PCL Intrtech Lenhydro Consortium JV was awarded the contract and constituent members agreed to demarcate and share, for operational convenience, their responsibilities in respect of execution of the work. It is also noticed that RSJV has taken on sub-contract the work of PCL. As per the said agreement, the margin money and bank guarantee commission is payable by the JV Since PCL-Intertech Consortium was the main contractor, the bank guarantee would have to be provided in its name. Since the assessee has not reflected the Bank Guarantee in its books, it has to be presumed that Bank Guarantee has been given by M/s. PCL and that the assessee is liable to pay the guarantee commission for availing the said service. In these circumstances, the Bank Guarantee commission is allowable as business expenditure.
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