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2016 (1) TMI 497 - AT - Income TaxDisallowance of service charges expended by the assessee wholly and exclusively for the purpose of its business - Held that:- In the light of the evidence on record it is not possible to accept the claim of the revenue that the commission expenditure in question is not genuine or the assessee has failed to prove that the commission expenditure in question is wholly and exclusively for the purpose of the assessee's business. The Hon'ble Punjab and Haryana High Court in the case of CIT vs Mandeep Singh [2009 (8) TMI 40 - PUNJAB AND HARYANA HIGH COURT] has taken a view that commission paid and allowed in an earlier year cannot be disallowed in the subsequent year when the facts and circumstances are identical. In the case of Mobile Communication (India) (P)Ltd vs DCIT [2009 (11) TMI 81 - ITAT DELHI-E ] the Hon'ble ITAT Delhi Bench has also taken the same view. We are of the view that with the evidence on record the assessee ahs established that the commission paid to SFPL was for the purpose of services rendered by SFPL and therefore the same has to be allowed as deduction as the same is for the purpose of business of the assessee. We, therefore, direct the AO to allow the deduction as claimed by the assessee. - Decided in favour of assessee.
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