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2013 (5) TMI 252 - ITAT DELHICash discount allowed to the dealers and sub-dealers for promotion of goods - Non deduction of TDS - CIT (A) deleted the addition - Held that:- As decided in assessee's own case [2013 (4) TMI 678 - ITAT DELHI] goods had been sold to them as principal to principal basis and they were not acting on behalf of the assessee, therefore, there was no agency relationship with them. As per the policy of the assessee company, no commission was payable to the dealers / sub-dealers for promotion of the selling of the goods & this cash discount was for the prompt payment for the goods supplied to them as abetment of cost and not in the nature of commission, therefore provisions of section 194H are not applicable. In favour of assessee. Disallowance u/s 14A - CIT (A) deleted the addition - Held that:- Assessee fairly agreed that Rule 8D is applicable for the concerned assessment year. However, he submitted that under Rule 8D the disallowance will be of Rs. 2500/- interest of justice will be served if the matter is remitted to the file of the AO to apply Rule 8D in this case. In favour of revenue statistical purposes. Advertisement expense incurred on purchase of gold items - disallowance as non furnish of satisfactory documentary evidence as it was for wholly and exclusively for business purpose - CIT (A) deleted the addition - Held that:- As assessee has submitted additional evidence before CIT(A) pertained to the confirmation of the dealers regarding having receipts of gold coins who in turn has obtained remand report from AO who has not given any adverse comments in this regard - no infirmity in the order CIT(A) - in favour of assessee. Increase in Director's remuneration - CIT (A) deleted the addition - Held that:- As AO has disallowed the expense on the ground that the assessee has failed to submit the necessary Resolution for the increase in remuneration. However, the required Resolution was submitted before the CIT(A) as additional evidence who in turn has obtained remand report from AO who has not given any adverse comments in this regard - no infirmity in the order CIT(A) - in favour of assessee.
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