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2014 (1) TMI 227 - AT - Income TaxDisallowance u/s 40(a)(ia) of the Act CBDT s circular No.715 nor considered Applicability of TDS on payments of actual reimbursements Held that - Nothing is brought to support that the payments contain the profit element passed on to the payee - There is no doubt that the circular apply to the payments which contains the income element Following CIT vs. Siemens Aktiongesellschaft 2008 (11) TMI 74 - BOMBAY HIGH COURT - when there is no element of income and the payment is only the reimbursement of expenses then no disallowance can be made u/s 40(a)(ia) of the Act Decided against Revenue. Disallowance on account of Electricity expenses Held that - The expenditure was incurred by the assessee solely in respect of the properties used by the assessee for business purposes - nothing is brought to our notice that the facts require any changes - Considering the business nature of the expenditure the assessee entitled to claim the same as an allowable deduction - No disallowance is called for - the direction given by the CIT (A) for deletion of the addition on account of electricity charges does not call for any interference Decided against Revenue.
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