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2010 (1) TMI 885 - AT - Income TaxDisallowance out of the purchases made from an associate company on the ground that the price paid by the assessee was unreasonable and excessive within the meaning of section 40A(2)(a) of the Act - no disallowance was made under section 40A(2)(a), price charged for the improved quality of the material it cannot be considered to be unreasonable or excessive, It cannot therefore be suggested that the assessee was indulging in unfair means to shift its profits to another entity, no merit in the disallowance which is hereby deleted. Disallowance of foreign travel expenses - no bill or voucher in support of the assessee's claim that it had reimbursed total expenses to the above extent to the local parties who had made the payments to the hotels on behalf of the assessee - Held that:- Even if the assessee had reimbursed the hotel expenses to the local parties who had made the bookings and effected the payments after obtaining a handsome discount there should have been no difficulty in the assessee obtaining a confirmation from those parties in support of the claim, no evidence in support of the hotel expenses disallowance upheld.
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