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2015 (10) TMI 2255 - AT - Income TaxBusiness was not in operation - expenses for employee cost, administrative expenses and finance charges of a beverage unit - deduction u/s 37(1) - CIT(A) deleted the addition - Held that:- It is not in dispute that in the instant case, the business of beverage unit was temporarily suspended since assessment year 2002-03 and the assessee was making efforts to settle the dispute with Pepsi Ltd. for whom the assessee was doing bottling work and had to incur expenditure in question for maintaining the unit in operational condition. It is also not in dispute that the expenditure in question is genuine business expenditure of the assessee. The Hon'ble Delhi High Court in the case of CIT Vs. Anita Jain (2009 (1) TMI 774 - DELHI HIGH COURT ) and the Hon'ble Madras High Court in the case of L. Ve. Vairavan Chettiar Vs. CIT (1965 (4) TMI 6 - MADRAS High Court ) have held that in case of temporary suspension of business, there is nothing to show that the business has been abandoned permanently and expenditure incurred to keep the business alive in the hope of reviving the same is business expenditure allowable under sec. 37(1) of the Act. Further, Departmental Representative has merely relied on the order of the Assessing Officer, but could not point out any specific mistake in the order of the Commissioner of Income Tax (Appeals). - Decided against revenue. Non deduction of TDS u/s 194H - commission paid to newspaper vendors - CIT(A) deleted the addition - Held that:- There is no error in the order of the Commissioner of Income Tax (Appeals) in deleting the disallowance on account of commission paid to the newspaper vendors and towards payments of commission to advertising agents under sec. 40(a)(ia). See Bharti Airtel Ltd. Vs. DCIT [2014 (12) TMI 642 - KARNATAKA HIGH COURT] - Decided against revenue.
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