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2013 (7) TMI 739 - HC - Income TaxDisallowance u/s 40A(2) - Addition made on 50% amount - Tribunal deleted addition - Held that:- any expenditure laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head 'Profits and gains of business or profession' - agreement between the assessee and the subsidiary company is not in dispute - subsidiary company was not able to comply with or perform its part of the contract. Merely because, a subsidiary company did not fulfil its obligations, that will not render the transaction illegal and consequently, it cannot be held that the expenditure laid out or incurred is not wholly for the business of the assessee-company - Following decision of Commissioner of Income-tax Versus V. S. Dempo and Co. P. Ltd. [2010 (10) TMI 711 - Bombay High Court] - Decided against Revenue.
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