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2012 (8) TMI 219 - AT - Income TaxAllocation of common expenditure - shipping business and non-shipping business - assessee preferred to offer income under tonnage tax scheme under section 115VJ of the Act, under which the income is assessed on some fixed basis without referring to the book results - AO identified the common expenses and allocated it in the ratio of gross receipts between the two businesses - Commissioner (Appeals) confirmed order of Assessing Officer – since assessee, apart from offering oral submissions, had failed to substantiate its claim that it had allocated common expenses in a fair and reasonable manner, order of Commissioner (Appeals) confirming Assessing Officer's order was to be upheld Disallowance under section 40(a)(ia) of the Act – Held that:- assessee is entitled to claim deduction of expenses if the TDS deducted there on is remitted before the due date for filing the return of income - assessee paid the entire amount of expenditure subjected to disallowance under section 40(a)(ia) of the Act before the end of the financial year and hence the provisions of sec.40(a)(ia) cannot be invoked on them - claim is not borne out of the orders of tax authorities - matter remanded to the file of the Assessing Officer
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