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2015 (6) TMI 393 - AT - Income TaxExcess payment of interest to the sister concern - CIT(A) deleted the addition - Held that:- The net rate charged from Kamala Associates was determined after taking into consideration all the aspects of commercial expediency, the rate difference given by Assessee were in the nature of discounts which were reduced from receipts and the net receipts were credited to Profit and Loss account and that provisions of Section 40(A(2) are applicable only in case of expenditure. We further find that ld. CIT(A) by a well reasoned and detailed order has deleted the made by A.O . Before us Revenue has not placed any material on record to controvert the findings of ld CIT(A). We therefore find no reason to interfere with the order of ld. CIT(A) - Decided against revenue. Suppression of job charges received from sister concern - CIT(A) deleted the addition - Held that:- In the present case, we find that A.O on the basis of rate charged by Assessee to others for dyeing and printing activities done by it, had estimated the dyeing and printing charges that the Assessee should have earned from Kamala Associates, its sister concern. We find that ld. CIT(A) by a well reasoned and detailed order has deleted the made by A.O by holding that there was no provision in the Act to tax income which has not accrued and further it was not a case of Section 40A(2)(b). Before us Revenue has not placed any material on record to support its contentions or controvert the findings of ld. CIT(A). We therefore find no reason to interfere with the order of ld. CIT(A) - Decided against revenue.
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