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2012 (7) TMI 217 - AT - Income TaxDis-allowance u/s 40(a)(ia) - non-deduction of tax at source on reimbursement of rent by assessee to its holding company - rent for the whole premises paid directly by the holding company to the Lessors and tax deducted u/s 194-I - Revenue contended such arrangement to fall under Explanation (i) of section 194-I - Held that:- Assessee is paying rent to the holding company as reimbursement since last many years, which has been accepted by the department all through. The lease deed provides for use of the premises by the subsidiary companies. The actual payments made by the holding company to the lessor and necessary tax was deducted therefrom. The holding company has also not debited the whole of rent to its books of account. It has only debited the rent which pertains to the part of the premises occupied by it. Therefore, there was no lessor and lessee relationship between the holding company and assessee where the provisions of section 194-I are attracted. Deletion of addition made u/s 40(a)(ia) is sustained - Decided against Revenue
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