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2016 (1) TMI 1123 - AT - Income TaxDisallowance of coordination charges paid - admissibility of additional evidence - Held that:- We find that the assessee company was a del credre agent of HPCL for whole of the West Bengal. The assessee paid a sum of ₹ 1.10 cr. to GSSIL as coordination charges for supervising the work of timely lifting of goods and their subsequent delivery to the parties or following up payments thereof. We find from the order of CIT(A) that the assessee has filed written submissions containing the details of agreement with HPCL, bill of GSSIL, quantitative details or correspondence between the assessee and GSSIL and proof regarding deduction of TDS on the above payment and also filing of TDS return by the assessee along with assessment order u/s. 143(3) of the Act for AY 2006-07 and the remand report of the AO on 31.12.2012. We find that the AO has objected to the admission of additional evidences under Rule 46A of the Rules and he mainly relied on the findings given by the AO in his assessment order. We find that the AO has been confronted with all the additional evidence by the CIT(A) in term of Rule 46A of the Rules and he has submitted a remand report. We find that AO in his remand report dated 31.12.2012 has alleged that the disallowance for payment by assessee to GSSIS and debited in the accounts as coordination charges was made by the AO and reasserted the position in the remand report also. We find that the AO in his remand report neither referred to nor dealt with the evidence produced by assessee before CIT(A), which in turn, were referred to him the facts are emerging from the case records. Thus we are of the view that the coordination charges paid by the assessee are clearly allowable as deduction and assessee has rightly claimed the same and CIT(A) has rightly allowed the claim of the assessee - Decided in favour of assessee.
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