TMI Blog2013 (5) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... ble 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. - ITA No.7660/Mum/2011 - - - Dated:- 5-4-2013 - Shri B. Ramakotaiah And Dr. S. T. M. Pavalan,JJ. For the Petitioner : Shri Mohit Jain, DR For the Respondent : Shri Dalpal Shah ORDER Per B. Ramakotaiah, A.M. This is a Revenue appeal against the orders of the CIT (A)-4 Mumbai, dated 08.08.2011. The issue in this appeal is with reference to the claim of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in to between the assessee company and the VISA/Master card International. In our opinion payment made as a result of a contractual liability is an allowable expenditure. FAA has rightly placed reliance on the case of Standard Polygraph Machines P. Ltd (supra) in this regard. Secondly, we find that the same issue has been decided in favour of the assessee by the orders of the Tribunal delivered for earlier AYs. 'I' Bench of the ITAT, Mumbai has decided the issue as under : "13.The fourth ground relates to deletion of the disallowance of Rs.36,37,533/- being amount deducted as TDS on payments in respect of charges for services provided by Visa/Master card International. 14.During the course of assessment proceedings the AO found that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18.We have heard the rival submissions and perused the orders of lower and also the orders relied upon by the Ld. Counsel. We find that identical facts, Hon'ble Madras High Court in the case of CIT Vs Standard Polygraph Machines Pvt. Ltd (supra) has 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. Similar view has been taken by Hon'ble Karnataka High Court in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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