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2010 (9) TMI 587 - AT - Income TaxDisallowance - Assessing Officer held that the assessee ought to have paid the sister concern only a portion of the amount billed by the assessee, after retaining its normal profit share – as reflected by average profit rate of 23.5%, and not the entire amount - It is only elementary that disallowance under section 40A(2)(b) can only be made when market value of the services rendered are less than amount paid to sister concern for such services - Coordinate bench in the case of Batlivala & Karnani Vs ACIT (2 SOT 379) - Accordingly the assessee gets relief on this issue During the course of proceedings, the assesse has filed certain additional evidences which could not be filed before the authorities below - In the result, the appeal is partly allowed for statistical purpose
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