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2013 (6) TMI 665 - AT - Income TaxDeduction u/s 80IA disallowed - conditions specified at (a), (b) and (c) of the section are not found fulfilled by assessee - Held that:- Respectably following assessee's own case [2010 (9) TMI 938 - ITAT HYDERABAD] claim of the assessee for deduction 80IA allowed. Against revenue. Payment to PSAM towards professional charges disallowed - Held that:- AO and the CIT(A) were not correct in concluding that there was no necessity for services to be rendered over and above those contemplating in the BIMCO agreement. As refering to the decision of CIT Vs. Dhanrajgiri Raja Narsingiriji [1973 (3) TMI 6 - SUPREME Court] wherein held that "it is not open to the Department to prescribe what expenditure an assessee should incur and in what circumstances he should incur that expenditure. Every businessman knows his interest best." In the case of Jaipur Electro (P) Ltd. Vs. CIT 1996 (5) TMI 55 - RAJASTHAN High Court] it was held that "the doctrine that the businessman is the best judge of business expediency does not affect the right, any duty of the assessing authorities to know whether it was incurred for business purposes and not for other extraneous conditions." Thus the expenditure to PSAM has been wholly and exclusively incurred for the purpose of business is to be allowed as a deduction. In favour of assessee.
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