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2014 (5) TMI 1069 - ITAT DELHIDisallowance u/s 40(a)(ia) - amount paid by the assessee to the consolidator for transfer of rights - Held that:- The issue in relation to disallowance u/s 40(a)(ia) is concerned, the same is squarely covered in favour of the assessee by the decisions relied upon. The relevant conclusion as drawn by ITAT in the case of Finian Estates Developers Pvt. Ltd. (2012 (6) TMI 705 - ITAT, Delhi) which state that the provisions of s.40(a)(ia) of the Act in any case do not apply,the assessee having not claimed any deduction for any expenses on account of payment of Vikram Electric Equipment (P) Ltd., either in its P and L a/c or in the computation of taxable income filed. It was only that the A.O. recoded a loss of ₹ 19,700. This obviously, did not include any addition of either ₹ 4.02 crores of ₹ 1.24 crore. So far as the issue in relation to genuineness of the expenditure is concerned, it is found that the Department has not challenged the findings of Ld. CIT(A) in this regard. So, considering the entirety of facts, circumstances, material on record and by following the precedents, we direct to delete the impugned addition made by the A.O. and confirmed by Ld. CIT(A). - Decided in favour of assessee.
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