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2010 (12) TMI 286 - AT - Income TaxDisallowance - Deduction u/s 80IB - Depreciation - assessee has acquired its sister concern’s land, building, plant and machinery on lease without there being any further responsibility on the part of its sister concern - CIT(A) was justified in holding that the withdrawal of deduction u/s 80-IB was not justified Regard to disallowance u/s 40A(2)(b) - the assessee onus cast on the assessee to justify the claim of contracting agreement fee was successfully explained by the assessee and there was no occasion for the Assessing Officer to disallow 80% of the expenditure amounting to Rs. 17,76,000 by invoking provisions of section 40A(2)(b) of the Act - mere making of payment to a relative will not automatically call for disallowance u/s 40A(2)(b) of the Act as the Assessing Officer has to prove that the payment so made was excessive or unreasonable - Decided in favor of assessee Dis allowance u/s 40(a)(ia) - Non deduction of TDS - exclusion of reimburse of expenses u/s 194C / 194J - separate invoice - since the agency commission and reimbursement of expenses are separately charged and recovered, the appellant was not required to deduct tax at source on reimbursement of expenses. TDS on transportation charges recovered from customers - Since, this transportation is recovered, it is not claimed as expenses in P&L account as debit is set off by credit in sales. - When they are not claimed as deduction, there can not be any disallowance u/.s 40(a)(ia). The disallowance can come into picture only when allowance is claimed. Depreciation on car - car in the name of partner - since the funds for purchase of car was gone out of the coffer of the firm it is undoubtedly proved that the assessee firm is the owner of the case - Depreciation allowed in the hands of firm. - The appeal filed by the revenue is dismissed
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