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2015 (5) TMI 715 - AT - Income TaxAddition made by the AO u/s. 40(a)(i) - CIT(A) restricted disallowance - Held that:- The working submitted by the assessee show that the amount of discount given to the Collection Centre is ₹ 11,78,24,030/- as against the disallowance of ₹ 16,80,66,667/- made by the AO. We find that Ld. CIT(A) has rightly observed regarding the disallowance of ₹ 11,78,24,030/- the assessee has accepted this amount as discount given to the Collection Centre and there is no dispute regarding this amount of discount given by the assessee. The hospitals which act as Collection Centre have the same agreement, therefore, the discount given to them also falls within the purview of section 40(a)(ia) and has to be disallowed. Keeping in view of the Ld. CIT(A) has rightly held that total disallowance of ₹ 16,80,66,667/- made by the AO, a sum of ₹ 11,78,24,030/- (wrongly mentioned as ₹ 11,78,030/- in the CIT(A)'s order) is confirmed on this account, hence, we do not find any infirmity in the order of the Ld. CIT(A). - Decided against revenue. Disallowance u/s. 40(a)(i) read with section 195 - non-deduction of tax - CIT(A) deleted the disallowance - Held that:- for any amount on which tax has to be deducted u/s 195, one of the basic conditions is that the, said amount should be taxable in India. Ld. CIT(A) further observed that the parties who have rendered service to the assessee company outside India and are working as collection centres do not fall within the purview of section 195 because the amount of discount which is given to them are for rendering service outside India and hence these amount are not taxable in India. Keeping in view of the facts and circumstances explained above, we are of the view that it was not required on the part of the assessee to deduct tax on these discounts. Thus, the addition of ₹ 33,67,000/- made by the Assessing Officer U/S 40(a)(i) was rightly deleted by the Ld. CIT(A). - Decided against revenue.
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